Pre-packaged milkshakes and lattes could be next in line to be hit with the sugar tax, which is applied to fizzy drinks, under new government plans.
The government is consulting on proposals until Monday July 21 to end the exemption from the tax for milk-based drinks, including non-dairy substitutes such as oats and rice.
In her autumn budget last year Chancellor Rachel Reeves announced that the government was considering widening the sugar tax, officially known as the soft drinks industry levy (SDIL),
The SDIL was introduced by the Conservative government in April 2018, and has led manufacturers reformulating drinks with healthier recipes.
On Monday (April 28), the Treasury also confirmed proposals to reduce the maximum amount of sugar allowed in drinks before they are covered by the levy from 5g to 4g per 100ml.
Government analysis shows that around 203 pre-packaged milk-based drinks currently on the market, making up 93% of sales within the category, will be hit by the tax unless their sugar content is reduced to the new proposed levels.
It estimates that 89% of soft drinks sold in the UK are not subject to SDIL because of reformulation of recipes since 2018.
