Cost of milkshakes and sweet treats to rise due to sugar tax
The sugar tax applied to fizzy drinks is set to be extended to milkshakes and similar treats under Government proposals.
Plans to end the exemption from the levy for dairy-based drinks, as well as non-dairy substitutes such as oats or rice, were put out for consultation on Monday (April 28).
Chancellor Rachel Reeves had said in her autumn budget last year that the Government would consider broadening the tax to include such drinks.
The Treasury confirmed plans to press ahead with the changes on Monday, as well as a proposal to reduce the maximum amount of sugar allowed in drinks before they become subject to the levy from 5g to 4g per 100ml.
As a result of widespread reformulation after the initial announcement of the so-called soft drinks industry levy (SDIL), 89% of fizzy drinks sold in the UK do not pay the tax, the Treasury said.
Price of milkshakes could increase under sugar tax expansion
Some 203 pre-packed milk-based drinks on the market, which make up 93% of sales within the category, will be hit with the tax unless their sugar content is reduced under the new proposals, according to Government analysis.
The SDIL was introduced by the previous Tory government in April 2018 as part of its anti-obesity drive.
The exemption for milk-based drinks was included because of concerns about calcium consumption, particularly among children.
However, the Treasury said young people only get 3.5% of their calcium intake from such drinks, meaning 'it is also likely that the health benefits do not justify the harms from excess sugar'.
'By bringing milk-based drinks and milk substitute drinks into the SDIL, the Government would introduce a tax incentive for manufacturers of these drinks to build on existing progress and further reduce sugar in their recipes,' it said.
The Institute for Economic Affairs, a right-wing free-market think tank, expressed concerns about the cost to consumers of the proposed changes.
'The sugar tax has been such a dramatic failure that it should be repealed, not expanded,' said Christopher Snowdon, head of lifestyle economics at the institute.
'Sugar taxes have never worked anywhere. What happened to Starmer's promise to not raise taxes on working people?'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Record
19 minutes ago
- Daily Record
Reform UK seizing control of councils sees rise in trade union membership
Reform UK have said they will seek to cut waste in local government, leading to fears of job cuts. Union membership in councils run by Reform has increased since the party took control of local authorities after the May elections, new figures reveal. The GMB, led by Edinburgh-born Gary Smith, said workers were 'flocking' to join unions amid fears of cuts to pay, jobs and conditions by Reform. Councils where the GMB has seen an increase in membership include Durham, Lancashire, Derbyshire, Staffordshire, Nottinghamshire and Doncaster. GMB national officer Rachel Harrison told the PA news agency: 'Reform spouts a lot of nonsense about being on the side of workers, but these figures show people aren't buying it. 'Workers in Reform-led councils are flocking to join unions because they know the first thing Farage and his cronies will do is attack low-paid staff's terms and conditions.' Smith, who is the GMB 's General Secretary, launched an angry attack against Reform in a speech to the union's annual conference in Brighton at the weekend, saying Nigel Farage and his 'ex-Tory soulmates' were no friends of workers. 'They've spent a political lifetime attacking trade unions and the rights we have all fought so hard for. Decent pay, better conditions, protections we cherish. 'Why is it always the posh, private schoolboys who want act like they're working-class heroes? 'Do they really think we can't see the bankers, the chancers, the anti- union blowhards? 'If Reform are so pro-worker, why did they just vote against protections against fire and rehire? Why did they vote against sick pay for all workers? Why did they vote against fair pay for carers? Why did they vote against trade union rights to access and organise in places like Amazon? 'Now they are going to run town halls, and the first thing they want to do is sack council workers. 'It's high time they were called out for their sneering, snooty attitude about so-called ' gold-plated ' pensions. "Go ask a local authority care worker, refuse collector, street cleaner, school support staff member if they think their meagre pension is gold-plated. ' Reform 's abuse and name-calling of low-paid public sector workers is an utter disgrace.'
South Wales Argus
21 minutes ago
- South Wales Argus
Union membership increases in Reform-led councils
The GMB said workers were 'flocking' to join unions amid fears of cuts to pay, jobs and conditions by Reform. Councils where the GMB has seen an increase in membership include Durham, Lancashire, Derbyshire, Staffordshire, Nottinghamshire and Doncaster. GMB national officer Rachel Harrison told the PA news agency: 'Reform spouts a lot of nonsense about being on the side of workers, but these figures show people aren't buying it. 'Workers in Reform-led councils are flocking to join unions because they know the first thing Farage and his cronies will do is attack low-paid staff's terms and conditions.' GMB general secretary Gary Smith launched an angry attack against Reform in a speech to the union's annual conference in Brighton at the weekend, saying Nigel Farage and his 'ex-Tory soulmates' were no friends of workers. 'They've spent a political lifetime attacking trade unions and the rights we have all fought so hard for. Decent pay, better conditions, protections we cherish. 'Why is it always the posh, private schoolboys who want act like they're working-class heroes? 'Do they really think we can't see the bankers, the chancers, the anti-union blowhards? 'If Reform are so pro-worker, why did they just vote against protections against fire and rehire? Why did they vote against sick pay for all workers? Why did they vote against fair pay for carers? Why did they vote against trade union rights to access and organise in places like Amazon? 'Now they are going to run town halls, and the first thing they want to do is sack council workers. 'It's high time they were called out for their sneering, snooty attitude about so-called 'gold-plated' pensions. Go ask a local authority care worker, refuse collector, street cleaner, school support staff member if they think their meagre pension is gold-plated. 'Reform's abuse and name-calling of low-paid public sector workers is an utter disgrace.'
Rhyl Journal
21 minutes ago
- Rhyl Journal
Union membership increases in Reform-led councils
The GMB said workers were 'flocking' to join unions amid fears of cuts to pay, jobs and conditions by Reform. Councils where the GMB has seen an increase in membership include Durham, Lancashire, Derbyshire, Staffordshire, Nottinghamshire and Doncaster. Nigel Farage? Weak on Putin. Threatens our NHS. #GMB25 — GMB Union (@GMB_union) June 8, 2025 GMB national officer Rachel Harrison told the PA news agency: 'Reform spouts a lot of nonsense about being on the side of workers, but these figures show people aren't buying it. 'Workers in Reform-led councils are flocking to join unions because they know the first thing Farage and his cronies will do is attack low-paid staff's terms and conditions.' GMB general secretary Gary Smith launched an angry attack against Reform in a speech to the union's annual conference in Brighton at the weekend, saying Nigel Farage and his 'ex-Tory soulmates' were no friends of workers. 'They've spent a political lifetime attacking trade unions and the rights we have all fought so hard for. Decent pay, better conditions, protections we cherish. 'Why is it always the posh, private schoolboys who want act like they're working-class heroes? 'Do they really think we can't see the bankers, the chancers, the anti-union blowhards? 'If Reform are so pro-worker, why did they just vote against protections against fire and rehire? Why did they vote against sick pay for all workers? Why did they vote against fair pay for carers? Why did they vote against trade union rights to access and organise in places like Amazon? 'Now they are going to run town halls, and the first thing they want to do is sack council workers. 'It's high time they were called out for their sneering, snooty attitude about so-called 'gold-plated' pensions. Go ask a local authority care worker, refuse collector, street cleaner, school support staff member if they think their meagre pension is gold-plated. 'Reform's abuse and name-calling of low-paid public sector workers is an utter disgrace.'
