Milkshakes and lattes will be included in sugar tax in bid to tackle obesity crisis

Wes Streeting has announced that the sugar tax will be applied to packaged milkshakes and lattes for the first time.

The health minister told the House of Commons that ministers were removing the exemption for milk-based drinks and that ministers would not look away “as children become unhealthy”.

The tax threshold will also be reduced from 5 grams per 100 ml to 4.5 grams per 100 ml.

The move comes ahead of Wednesday’s Budget, where Rachel Reeves is expected to announce a series of tax rises as she seeks to plug the gap in the public finances.

Speaking to health questions on Tuesday, the health secretary said: “Obesity is depriving children of the best possible start in life, hitting the poorest, leaving them with lifelong health problems and causing billions of dollars in damage to the NHS.

“Therefore, I can tell the House that we are extending the levy on the soft drinks industry to include bottled and carton milkshakes, flavored milk and milk substitutes.

“We are also lowering the threshold to 4.5 grams of sugar per 100 millilitres. This Government will not turn a blind eye as children become unhealthy and our political rivals urge us to leave them behind.”

The move will affect packaged milkshakes and coffees, but not drinks made in cafes or restaurants.

The sugar tax, also known as the soft drink industry tax, is a tax on prepackaged beverages sold in cans or cartons.

It was introduced by the Conservative government in 2018 to help reduce obesity, including in children.

Earlier on Tuesday, a minister described obesity as “the biggest problem in our health service for our generation”.

When asked if tackling obesity was more important than increasing income, Karin Smyth told Times Radio that “more broadly, it’s about tackling obesity, which we know is one of the biggest causes of poor health and hence the demand for healthcare.”

He added: “The measures we announced as part of the manifesto to reduce junk food advertising, particularly to protect young people from becoming obese, because if you become obese at a young age it limits your life chances…

“Obesity is the biggest challenge in our healthcare for this generation and it is important that we make sure we create the healthiest generation of young children going forward.”

Reacting to Mr Streeting’s announcement, Katharine Jenner, chief executive of the Obesity Health Alliance, said: “Ending the sugary milkshake exemption and including more sugary soft drinks in the tax is a logical and overdue step to protect children’s health, especially their teeth.

“The soft drinks industry tax has already removed billions of teaspoons of alcohol. sugar Proving that clear and consistent rules are effective, benefiting the nation’s diet without harming the growth of the industry.

“We are now calling on the Government to implement the remainder of the NHS’s 10-year health plan – helping to rebuild a food environment that supports rather than undermines children’s health.”

Sarah Woolnough, chief executive of the King’s Fund, said: “It is well known that industry reacts quickly when the government sets out clear legal rules.

“Far from limiting individuals’ freedom, smart regulations like the milkshake tax expand freedom and allow people to live more of their lives in good health.”