KEY POINTS
- Rachel Reeves may remove dairy exemptions from the sugar levy to raise up to £100m toward the UK's £20bn budget gap
- The plan would subject milkshakes and sweetened lattes to the Soft Drinks Industry Levy starting in April 2027
- Critics say the proposal will increase business costs while doing little to meaningfully reduce obesity or close the fiscal gap
Chancellor Rachel Reeves is preparing to remove long-standing dairy exemptions from the UK's sugar levy, creating what critics have labelled a 'milkshake tax', as she seeks new ways to fill the nation's £20bn budget shortfall.
