Health Secretary Wes Streeting is preparing to announce plans to lower the threshold for the Soft Drinks Industry Levy, meaning more sugary beverages will be affected
The tax on sugary drinks will be widened to drive down obesity and protect children’s health, the Mirror understands.
Health Secretary Wes Streeting is preparing to announce plans to lower the threshold for the Soft Drinks Industry Levy from 5g to 4.5g of sugar per 100ml, meaning more beverages will be affected unless manufacturers slash sugar levels. Milkshakes and pre-packaged coffees will also be included for the first time as an exemption on milk-based drinks is expected to be ditched.
The changes are set to kick in from January 2028 – putting manufacturers on notice to reduce the sugar content in their drinks or face the new charge.
The move is likely to spark anger from the soft drinks industry, which has previously raised concern about the pressures facing businesses. But the changes could slash some 17 million calories from the nation’s daily intake, and ease pressure on the NHS by driving down obesity-related illnesses.
The sugary drinks tax, which is paid by manufacturers, was introduced by the Tories in April 2018 to tackle obesity by reducing the sugar content in drinks popular with kids. Drinks with between 5p and 8g of sugar per 100 ml are taxed at 18p per litre, rising to 24p per litre for beverages with more than 8g of sugar per 100ml.
Milk-based drinks were originally exempted due to fears it could stop children getting enough calcium. But the Government decided to consult on extending the levy earlier this year.
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A Whitehall source said: “We don’t comment on Budget speculation. Wes has set the ambition of making sure children today are part of the healthiest generation that ever lived.
“It’s kids from the poorest backgrounds who suffer most from poor health. Wes is determined to give every child a healthy start in life.”
It comes as Rachel Reeves prepares to unveil the highly anticipated Budget on Wednesday, where she’ll set out plans to plug a black hole in the public finances. The Chancellor is expected to announce a range of smaller tax-raising measures after abandoning plans to put up income tax.
Better than expected economic forecasts allowed her to ditch the bombshell move, which would have been a clear breach of Labour’s manifesto vow to protect working people from hikes to key taxes – income tax, VAT and National Insurance.
The hole in the public finances is believed to be closer to £20billion than £30-40billion some experts had predicted. But Ms Reeves also wants to build in more headroom to allow Britain to weather future economic shocks – and to save her from having to come back for more next year.
