Milk drinks and lattes to get more expensive in new tax announcement

Milkshakes, milk drinks and lattes will be hit by the sugar tax - meaning the price will go up or manufacturers will have to change the recipe, Health Secretary Wes Streeting told the Commons, as he pledged not to look away “as children get unhealthier”. Speaking at health questions, he said: “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. “We’re also reducing the threshold to 4.5 grams of sugar per 100 millilitres. This Government will not look away as children get unhealthier and our political opponents urge us to leave them behind.” The move will affect packaged milkshakes and coffees, but not drinks made in cafes and restaurants. It follows a Government consultation on the issue looking at removing the exemption for milk-based drinks while introducing a “lactose allowance” to account for the natural sugars in the milk component of the drinks. Ministers have also been looking at removing the exemption for milk substitute drinks with “added sugars” beyond those sugars derived from the principal ingredient, such as oats or rice. 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. The Government has also been looking at reducing the maximum amount of sugar allowed in drinks from five grams to four grams per 100ml, after which point they will be hit by the levy. 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 told Times Radio on Tuesday that “obesity is the major challenge of our health service for this generation”. Asked whether tackling obesity was more important than raising revenue, she said any tax measures would be set out in the Budget but “the wider point is about tackling obesity, which we know is one of the biggest causes of ill health, and therefore demand on the health service”. She added: “Measures we’ve already announced as part of the manifesto, to reduce junk food advertising, particularly to protect young people from becoming obese, because if you become obese at a young age, it does limit your life chances… “Obesity is the major challenge of our health service for this generation, and it is important that we make sure that we create the healthiest young generation of children coming forward.”