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South Wales Guardian
30-04-2025
- Business
- South Wales Guardian
Cost of milkshakes and sweet treats to rise due to sugar tax
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. 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. Recommended Reading 'The sugar tax has been such a dramatic failure that it should be repealed, not expanded,' said Christopher Snowdon, head of lifestyle economics at the institute.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?' The Government consultation on the plans will run from Monday until July 21.
STV News
30-04-2025
- Business
- STV News
Sugar tax could be extended to milkshakes and lattes to tackle obesity
The sugar tax applied to fizzy drinks could be extended to milkshakes and coffee drinks under UK 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. The tax would be applied to pre-packaged drinks cans of latte, flavoured milkshake drinks and cartons of milk alternatives. Chancellor Rachel Reeves had said in her autumn budget last year that the Government would consider broadening the tax to include such drinks. The so-called Soft Drinks Industry Levy (SDIL) was introduced by the previous Tory government in April 2018 as part of its anti-obesity drive. Government statistics released last September showed the tax has raised a total of £1.9bn since it first came into effect. The SDIL proposal seeks to reduce the maximum amount of sugar allowed in drinks before they become subject to the levy, lowering the threshold from 5g to 4g per 100ml. Under the new plans, milk-based drinks would receive a 'lactose allowance', accounting for the naturally occurring sugars in milk. The government says this could reduce daily calorie intake by an average of 1.2kcal in 19-64 year olds and 2.1kcal in 11-18 year olds to achieve health and economic benefits of around £4.2bn over 25 years. Some 203 pre-packed milk-based drinks on the market, which make up 93% of sales within the category, will be subject to the tax unless their sugar content is reduced under the new proposals, according to Government analysis. Sugar content in soft drinks collapsed by 46% in the past five years as a result of the levy introduced by chancellor George Osborne in 2016, according to the Food and Drink Federation. As a result of widespread reformulation by manufacturers after the initial announcement, 89% of fizzy drinks sold in the UK do not pay the tax. The sugar tax is currently charged at £1.94 per ten litres on drinks with 5g to 7.9g sugar per 100ml and £2.59 per ten litres for drinks with 8g or more sugar per 100ml. 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. They also argue that it has done little to tackle obesity in children. UK sugar intake remains about double the recommended level, according to government statistics. The most recent data from the Scottish Health Survey 2022 shows that 18% of children aged two to 15 are now at risk of developing obesity – the Scottish Government's 2030 target is 7%. Consumption of sugary soft drinks is also more than twice as high among the most deprived children compared to the least deprived – 29.1% compared to 13.1%. '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?' The Government consultation on the plans will run from Monday until July 21. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Scotsman
30-04-2025
- Business
- Scotsman
How lattes and milkshakes in Scotland would be hit by new sugar tax under government plans
The sugar tax could be expanded to include lattes - and the changes would apply in Scotland Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The sugar tax applied to fizzy drinks could be extended to pre-packaged lattes and milkshakes under new UK government proposals. Milkshakes, lattes and other pre-packaged milk-based drinks could soon face new taxes under plans being considered by the UK government to expand the sugar levy, in a move ministers say is aimed at tackling childhood obesity. Advertisement Hide Ad Advertisement Hide Ad The products would face the sugar tax under moves to tackle obesity | PA The Treasury launched a consultation on Monday proposing to end the exemption for milk-based drinks and their plant-based alternatives, such as oat and rice beverages, from the Soft Drinks Industry Levy (SDIL), more commonly known as the sugar tax. The levy would apply in Scotland, as well as south of the Border. UK home secretary Yvette Cooper said the measures were part of a scheme to improve children's health. 'We are making sure we are taking practical, sensible measures to improve the health of our children,' she told BBC Breakfast. Advertisement Hide Ad Advertisement Hide Ad First introduced by the Conservative government in April 2018, the SDIL applies to manufacturers of sugary soft drinks and was designed to encourage reformulation and reduce sugar consumption among children. The tax has since raised £1.9 billion and, according to government figures, helped reduce sugar levels in many popular drinks. Almost 90 per cent of soft drinks sold in the UK are now exempt from the levy due to changes made by manufacturers. However, pre-packaged milk-based drinks have so far remained outside its scope. Government analysis shows 93 per cent of drinks in this category could be hit by the expanded tax unless sugar content is lowered in line with the new proposed thresholds. The government is also proposing to lower the threshold for sugar content from 5g to 4g per 100ml - a move designed to close what the Treasury describes as a 'target effect' that has led manufacturers to cluster sugar levels just below the existing limit. Advertisement Hide Ad Advertisement Hide Ad The exemption for milkshakes and lattes was initially made due to concerns about children's calcium intake. But the Treasury now argues such drinks contribute just 3.5 per cent of calcium in young people's diets, while delivering high levels of sugar. A spokesperson said: 'It is likely that the health benefits do not justify the harms from excess sugar.' Chancellor Rachel Reeves first signalled the government's intention to review the levy in her Autumn Budget last year. The consultation, which opened Monday, will run until July 21. The proposals have drawn sharp criticism from opposition parties. Shadow chancellor Mel Stride called the move a 'sucker punch' to families, accusing Labour of pushing up the cost of living. Reform UK leader Nigel Farage said he was 'sick to death of a government telling us how we should live' and urged ministers to focus on education instead of taxation. Conservative leader Kemi Badenoch also criticised the proposal, calling the levy 'a bit too much nanny state'. She said the government appeared to be 'just looking for what else they can tax'. Advertisement Hide Ad Advertisement Hide Ad Supporters, however, say the extension is long overdue. Tam Fry, chairman of the National Obesity Forum, said the levy was 'not a game-changer', but a necessary step in a broader strategy to improve public health.
The Independent
29-04-2025
- Business
- The Independent
Will extending the ‘sugar tax' leave a sour taste?
The government is consulting on extending the existing ' sugar tax ' on soft drinks to pre-packaged milkshakes and lattes, ending the exemption on milk-based products and adding in non-dairy substitutes such as oat milk. It would, as now, only apply to shop-bought products, rather than those found in fast food joints or restaurants. The Treasury has also confirmed proposals to reduce the maximum amount of sugar allowed in drinks before they become subject to the tax from 5g to 4g per 100ml. There has already been some strong reaction... What's the idea? The sugary drinks tax, or soft drinks industry levy (SDIL) to give it its proper title, was proposed by then chancellor George Osborne in his 2016 Budget and implemented by the Conservatives in 2018. No doubt, raising money for the Treasury was one motivation, but so was reducing the amount of money the NHS had to spend dealing with the rising incidence of tooth decay, obesity and diabetes, especially among the young. At the time there were concerns that if the tax was applied to milk-based drinks it might affect the intake of calcium, so products based around milk were exempted. Subsequent experience suggests that very little calcium is sourced from milkshakes and the like – 3.5 per cent – and that the benefits of reducing sugar intake outweigh the risk of reduced calcium intake among the young. Has it worked up to now? Yes. What's happened is that the soft drinks industry has applied its skill and ingenuity to reducing the quantity of sugar to below the threshold for the tax, presently 4g, with little effect on sales or the palatability of the products. No one seems to miss the sugar that much. Thus the government says that some 89 per cent of soft drinks sold in the UK are not subject to the tax because of widespread 'reformulation' by manufacturers since 2018. However, as with all such fiscal rules, there's been a trend to get drinks to just below the 5g/100ml 'target'. Hence the move to 4g/100ml. Does it raise much money? Not really, because the drinks industry has managed to avoid it by revising their recipes. So in 2023-24 the government raised £338m from the SDIL – useful but tiny compared to other sin taxes. Ten times more than that comes in from duties on gambling, and £8.8bn in tobacco taxation. For scale, £300m is the amount GB Energy will invest in offshore wind farms. Why have sin taxes? Because of what economists call 'externalities' – unavoidable costs borne by the entire community as a consequence of such activities – including cleaning up pollution, NHS spending on cancers, and the social and economic costs of problem gambling and alcoholism. Are sin taxes regressive? Unavoidably so, but can be ameliorated by raising the incomes of the poor. What's been the reaction? For the Conservatives, the shadow chancellor, Mel Stride, said the move was a 'sucker punch' to households when Labour had 'already pushed up the cost of living for families'. Kemi Badenoch said it was too much nanny state – despite the scheme basically being a Tory proposal. Nigel Farage, leader of Reform UK and famously partial to a cigarette and a pint said that he is 'sick to death of a government telling us how we should live'. He says the focus should be on health and diet education. His Reform UK colleague, Lee Anderson, famously argued that meals could be cooked from scratch for just 30p. What next? Much the same arguments as apply to sugar can be made for taxing foodstuffs containing too much salt and/or fat, including meals eaten out. The National Food Strategy, an independent review commissioned by the Johnson administration and since shelved, suggested a £3/kg tax on sugar and a £6/kg tax on salt sold wholesale for use in processed foods, or in restaurants and catering businesses. Whatever the merits of this, the British have long resisted taxing foodstuffs of any kind, including a reluctance to levy tariffs on food imports. It would certainly widen the tax base, ease the weight of the burden on the NHS (sometimes literally), and make the nation that much healthier and happier. But which politician is going to be brave enough to put the cost of groceries up?
Wales Online
29-04-2025
- Business
- Wales Online
Sugar tax 'to be extended' to these drinks in Wales
Sugar tax 'to be extended' to these drinks in Wales The proposals would come into place in Wales A tax on fizzy drinks could be extended to drinks like milkshakes and ready-to-go lattes in Wales, it has been confirmed. The UK Government has launched a consultation about ending an exemption in place for milk-based drinks, as well as non-dairy substitutes such as oats or rice. The soft drinks industry levy, which is also known as the sugar tax, is a tax on pre-packaged drinks such as those sold in cans and cartons in supermarkets. It was brought in in 2018. An original exemption for milk-based drinks was included because of concerns about calcium consumption, particularly among children. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here The government announced at Autumn Budget 2024 that it was looking at widening the restrictions. The consultation sets out proposals for changes to the minimum sugar content threshold at which the levy applies, and the current exemptions for milk-based drinks and milk substitute drinks. It is consulting on reducing the maximum amount of sugar allowed in drinks before they become subject to the levy from 5g to 4g per 100ml. Article continues below It will mean 203 pre-packed milk-based drinks on the market, will be impacted unless their sugar content is reduced in accordance with the proposals, government analysis says. The Welsh Government has confirmed it would, if the UK Government brings it in, would also be in place in Wales. The three measures being consulted on are: to reduce the minimum sugar content at which the SDIL applies to qualifying drinks from 5g to 4g. The SDIL standard rate would apply from 4g to 7.9g total sugar per 100ml, as opposed to 5g to 7.9g total sugar per 100ml currently to remove the exemption for milk-based drinks whilst introducing a 'lactose allowance' to account for the natural sugars in the milk component of these drinks to remove the exemption for milk substitute drinks with 'added sugars' beyond those sugars derived from the principal ingredient, such as oats or rice Home Secretary Yvette Cooper said it was intended to improve the health of children. "We are making sure we are taking practical, sensible measures to improve the health of our children," she told BBC Breakfast. 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 added. The government consultation will run until July 21. Industry body the Food and Drink Federation said "significant progress" had already been made and "many years of investment in research and development" had reduced sugar in soft drinks by 46% in the last five years, with a 30% sugar reduction in pre-packed milk-based drinks in the last three years. Article continues below It said that food and drink manufacturers were facing a series of inflationary pressures and called on the government to "continue to create the right conditions for businesses to innovate and also be clear about their long-term goals to promote business confidence".
