Rachel Reeves ‘will announce milkshake tax’ in Budget
‘Milkshake tax’ explained – and why Reeves could introduce it in next Budget
- Rachel Reeves, the Chancellor, is reportedly planning to introduce a 'milkshake tax' in the upcoming Budget to help plug gaps in public finances.
- The proposed measure would end the current exemption for milk-based drinks from the Soft Drinks Industry Levy.
- Under the new rules, the levy would apply to dairy drinks containing 4g or more of sugar per 100ml, a reduction from the existing 5g threshold for other soft drinks.
- Conservative shadow chancellor Mel Stride criticised the potential tax, stating it would unfairly penalise businesses that have already made efforts to reduce sugar.
- Former Bank of England chief economist Andy Haldane suggested that ongoing Budget speculation has contributed to weaker-than-expected economic growth figures.