Milkshakes face price hike under government plans to extend sugar tax
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The drink that could face a price hike under sugar tax extension
- The UK government is proposing to extend the sugar tax on fizzy drinks to include milkshakes and similar beverages, both dairy and non-dairy.
- This follows Chancellor Rachel Reeves' autumn budget announcement and aims to reduce sugar content in these drinks.
- Currently, 93 per cent of pre-packed milk-based drinks on the market would be affected unless their sugar content is lowered.
- The tax was initially introduced in 2018, with milk-based drinks exempt due to concerns about calcium intake, but the Treasury now argues the health benefits don't outweigh the risks from excess sugar.
- The proposal is open for public consultation until 21 July 21, with critics raising concerns about increased costs for consumers.