Reeves set to announce new ‘milkshake tax’

Rachel Reeves plans to lower the sugar tax threshold to 4g per 100ml, hitting milk-based drinks for the first time. The change, expected in April 2027, follows the current exemption for milk drinks under the Soft Drinks Industry Levy, which imposes an 18p tax per litre on soft drinks containing 5g or more of sugar per 100ml. The soft drinks industry warns that this could increase supermarket prices by 5% and only marginally reduce calorie intake. Sir Mel Stride, shadow chancellor, commented: “Labour’s new milkshake tax moves the goalposts yet again for an industry that’s already cut sugar.”