As part of the budget proposals for 2016 the UK announced a proposal to impose a tax on sugary drinks with effect from April 2018. This would apply to soft drinks with sugar content above a certain level and would be imposed on the manufacturers of the drinks. Regular fizzy drinks and energy drinks would be taxed but milk based products and coffee would not. The aim of the tax would be to decrease sugar consumption by raising the price of these drinks or by encouraging the manufacturers to decrease the sugar content.

A survey by a pressure group known as the Taxpayers Alliance published on 30 May 2016 has found that the ten most sugary drinks analyzed would not be covered by the proposed sugar tax. The survey found that certain brands of hot chocolate, chocolate flavored milk and other drinks have higher sugar content than the drinks targeted by the proposed tax.

The pressure group also considers that the tax on sugary drinks would be regressive. The tax would hit poorest families the hardest as they tend to spend a higher proportion of their income on sugary soft drinks. The group suggests that certain types of coffee or drinking chocolate that are more likely to be drunk by middle income groups would escape the tax despite having sugar content at least as high if not higher.