Rachel Reeves plots nanny-state ‘milkshake tax’ to curb obesity as Britons face price hikes
Rachel Reeves is plotting to introduce a so-called milkshake tax in an attempt to curb Britain’s obesity levels, it has been claimed.
The Chancellor has drawn up plans to impose levies on milk and yoghurt-based beverages for the first time.
Reeves is said to have concluded that the products have a damaging impact on public health, with obesity rates jumping from just 14.9 per cent in 1993 to 28.9 per cent in 2022.
Experts warn the decision could drive prices up by as much as 24p a litre, with officials even anticipating 93 per cent of drinks on the market to be affected unless they change their recipes.
Chancellor Rachel Reeves
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The move could force massive drinks retailers such as Irn-Bru and Ribena to cut sugar content to avoid the levy.
Reeves also intends to make an existing tax on fizzy drinks more onerous, The Telegraph has revealed.
The Treasury, which disclosed the plans in a consultation published on Monday, claimed the move was needed to curb Britain’s sugar intake.
Latest figures show the nation’s sugar intake remains two-times higher than recommended levels.
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A stock image of sugar
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However, the decision prompted outcry from those claiming Sir Keir Starmer would be breaching his election pledge not to impose higher taxes on working people.
Dr Christopher Snowdon, head of lifestyle economics at the Institute of Economic Affairs, said: “The sugar tax has been such a dramatic failure that it should be repealed, not expanded.
“It has been costing consumers £300million a year while childhood obesity rates have continued to rise.
“To claim it has been a success on the basis of a hypothetical reduction of one calorie a day is absurd. Sugar taxes have never worked anywhere.
Fizzy, sugary drinks on a supermarket shelf on April 27, 2017 in Cardiff, United Kingdom
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“What happened to Starmer’s promise to not raise taxes on working people?”
The sugar tax, which was introduced in 2018, is set at 19p per litre or 24p for higher-sugar drinks.
Reeves confirmed plans to extend the levy in her October Budget but stopped short of providing further details.
In a document penned by James Murray, the Exchequer Secretary to the Treasury said: “We recognise that many products have been reformulated to just below the 5g sugar per 100ml threshold.
“Nearly a decade on, we believe it is time to set a more ambitious target. In addition, while there is no doubt about the nutritional benefits of plain milk, it remains an anomaly that sugary pre-packaged milkshakes and other milk-based drinks are exempt from the levy.
Keir Starmer and Rachel Reeves
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“This consultation outlines pragmatic steps to extend the SDIL’s reach and amplify its impact.
“We propose measures that could save thousands more from becoming overweight or living with obesity, ensuring the levy remains fair, robust, and effective while minimising burdens on businesses.”
A Treasury spokesman also stressed that the existing 5g threshold forced only a small amount of companies to drop significantly below the maximum level, with many hovering just above 4g per 100ml of sugar.
No11, which is expected to drop previously suggestions of introducing a third rate for drinks with the highest sugar content, also said the level had been decided following a series of round tables with industry figures, health groups and academic experts.