Health Secretary Wes Streeting said the Government will end the exemption for milk-based beverages from the existing tax on sugary drinks
Milkshakes and lattes will be subject to a new sugar tax. Health Secretary Wes Streeting said the Government will end the exemption for milk-based beverages from the existing tax on sugary drinks.
The move will affect packaged milkshakes and coffees, but not drinks made on site in cafes and restaurants. It comes as Rachel Reeves blames sexism for criticism she’s getting over the Budget
Mr Streeting told MPs: “Obesity robs children of the best possible start in life, hits the poorest hardest, sets them up for a lifetime of health problems and costs the NHS billions.
“So I can announce to the House, we’re expanding the soft drinks industry levy to include bottles and cartons of milkshakes, flavoured milk and milk substitute drinks.”
Mr Streeting told MPs the Government would reduce the maximum amount of sugar allowed in drinks to 4.5g of sugar per 100ml.
That affects soft drinks like Irn Bru too as bosses at the drink firm previously changed the formula of its original brand in 2018 in response to the introduction of the first sugar tax rules.
The move proved divisive with the drink’s many hardcore fans and even the reformulated version will now be hit by the levy as it now again faces a lower threshold.
“Mr Speaker, this Government will not look away as children get unhealthier, and our political opponents urge us to leave them behind,” Mr Streeting said.
Helen Kirrane, of Diabetes UK, said: “With cases of type 2 diabetes continuing to rise at an alarming rate, particularly in younger people, we need bold action to cut unnecessary sugar from food and drink.
“The Soft Drinks Industry Levy has already substantially reduced the sugar in soft drinks, lowering the amount of sugar consumed by children. Expanding it to include milk-based and milk-alternative drinks, which can contain large amounts of hidden sugar, is a welcome step forward.”
And Eddie Crouch, Chair at British Dental Association, added: “Voluntary action here has achieved nothing. But since it rolled out in 2018, the sugar levy has led industry to remove tens of thousands of tonnes of sugar from soft drinks.
“Tooth decay is the number one reason for hospital admissions among young children. This is precisely the time for government to go further and faster with tried and tested policies.”
It follows a Government consultation on the issue looking at removing the exemption for milk-based drinks.
The exemption for milk substitute drinks with “added sugars” beyond those sugars derived from the principal ingredient, such as oats or rice, was also examined.
The sugar tax, also known as the soft drinks industry levy (SDIL), is a tax on pre-packaged drinks such as those sold in cans and cartons in supermarkets.
It applies to manufacturers and was introduced by the Conservative government in 2018 to help drive down obesity, including among children.
According to the Treasury, children’s sugar intake in the UK is more than double the recommended maximum of no more than 5% energy from free sugar.
The existing levy has led to a 46% average reduction in sugar between 2015 and 2020 for those soft drinks that were to be brought under the rules.
Health minister Karin Smyth said that “obesity is the major challenge of our health service for this generation”.
But AG Barr, which produces Irn-Bru, previously joined other soft drinks giants like Coca-Cola in appealing directly to PM Sir Keir Starmer to warn they were facing £220m in extra costs because of the changes.
In a letter to Starmer organised by the British Soft Drinks Association (BSDA) last month, firms warned that strengthening the sugar tax would have “severe economic consequences for our industry”.
“This couldn’t come at a worse time. Inevitably prices will have to rise to pay for this, by as much as 5%,” they wrote to the Prime Minister.
“Sacrificing tomorrow’s growth for modest revenue gains today will weaken long-term tax take and won’t be worth it within a decade.”
The Daily Star says…
It’s fair to say that this Government’s record so far is no great shakes. And today’s budget is unlikely to change anyone’s opinion. It is going to be about as much fun as a wet weekend.
Rachel Reeves has clearly been so worried about all the grim revelations in it that she has been prepping us for the worst for weeks.
By now we all know that tax rises are inevitable. But these fun sponges are also planning to target some of the things we love.
They have announced the sugar tax is going to be extended to pre-packaged milkshakes and lattes. Not only that, but more of our favourite fizzy drinks will face the levy. Yes, the thinking behind this hit on sugary products has some logic in terms of our health.
But we all know the reality is it’s just another cash grab that will hit our pockets.
Plus it’s another worrying sign about the growing nanny state in this country. Folk should be trusted to make their own decisions without all this expensive and bothersome interference from politicians.
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