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The sugar tax currently imposed on soft drinks could be applied to milkshakes as the government seeks to crack down on rising obesity levels.

The government has opened a consultation to extend the tax to pre-packaged drinks containing at least 75% milk, including non-dairy substitutes with added sugar such as oat, soy, almond and rice milk.

This will include pre-packaged cans of latte, flavoured milkshake drinks and cartons of milk alternatives bought in supermarkets.

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The tax could be extended to include non-dairy substitutes with added sugar. Pic: iStock


Ministers also want to lower the minimum amount of sugar allowed before the tax is applied in these drinks, as well as in fizzy drinks already included in the tax – known formally as the Soft Drinks Industry Levy.

Extending the tax will hit 203 pre-packaged milk-based drinks currently available – 93% of sales, Department of Health analysis found.

The original sugar tax on soft drinks was introduced in 2018 under the Conservative government and has led to a 46% reduction in sugar in those drinks, with 89% of soft drinks sold in the UK now not paying the tax due to reformulation.

Modelling studies have found this may have prevented thousands of cases of childhood obesity and cut down on tooth decay.

However, the government said UK sugar intakes remain about double the recommended level, which is why Chancellor Rachel Reeves announced in the October budget there would be a consultation to extend it.

The sugar tax was introduced in 2018. Pic: Reuters
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The sugar tax was introduced in 2018. Pic: Reuters

The proposals are:

• To reduce the minimum sugar content at which the tax applies from 5g to 4g of sugar per 100ml

• To include milk-based drinks – but with a “lactose allowance” to account for milk’s natural sugars

• To also include milk substitute drinks with added sugars.

The government says this could reduce daily calorie intake by 1.2kcal in 19-64 year olds and 2.1kcal in 11-18 year olds to achieve health and economic benefits of around £4.2bn over 25 years.

The Treasury’s tax department, which carried out the analysis, said that was an average over each age group, with many people not consuming the drinks at all.

Drinks that would come under the new proposal include: Starbucks Caramel Macchiato Iced Coffee (8.2g sugar/100ml), Shaken Udder Vanillalicious milkshake (8.4g sugar/100ml), Yazoo Strawberry Milk Drink (9.6g sugar/100ml), Alpro Soya Chocolate long life drink (7.6g sugar/100ml), Califia Farms Matcha Latte (4.3g sugar/100ml), Oatly Oat Drink Chocolate Deluxe (6.8g sugar/100ml).

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UK may have reached ‘peak obesity’

‘Sucker punch’ to stretched families

The Conservatives said the extension is a “sucker punch” to households when Labour had “already pushed up the cost of living for families”.

Reform UK leader Nigel Farage told the BBC he was “sick to death of a government telling us how we should live” and said they should focus on educating people who can then make healthy decisions.

Currently, the sugar tax is charged at £1.94 per 10 litres on drinks with 5g to 7.9g sugar per 100ml and £2.59 per 10 litres for drinks with 8g or more sugar per 100ml.

For the 2023/2024 financial year, the sugar tax brought in about £338m, with 95% paid on drinks containing 8g or more sugar per 100ml.

Milk and milk substitute-based drinks have been exempt from the sugar tax over concerns one in five teenage girls did not get enough calcium in their drinks.

However, milk-based drinks only provide up to 3.5% of calcium for children aged 11 to 18 years, compared with 25% from plain milk and 38% from cereal products, including fortified white bread.

Calls for sugar tax on food

Industry body, the Food and Drink Federation, welcomed the consultation and said “significant progress” had already been made in reducing sugar in soft drinks and pre-packed milk drinks in the last three years.

It added manufacturers are facing a series of pressures and called on the government to “create the right conditions for businesses to innovate and also be clear about their long-term goals to promote business confidence”.

Charity The Food Foundation also welcomed the consultation but said the government needs to be more ambitious and include food in the sugar tax “if the government is serious about improving diets, our health and the economy”.

The consultation will run from 28 April until 21 July, with businesses, charities and individuals encouraged to let their views be known.

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Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza

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Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza

Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland on Monday.

Downing Street said the prime minister would discuss “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the president’s Turnberry golf course in Ayrshire.

Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.

Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.

Sir Keir has tried to forge close personal ties with the president, frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK.

The approach seemed to pay off in May when Mr Trump announced the agreement of a trade deal with the UK that would see several tariffs lowered.

The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel.

Prior to the visit, the White House said the talks would allow them to “refine the historic US-UK trade deal”.

Extracting promises from the president on the Middle East may be harder though.

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Should aid be dropped into Gaza?

Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies.

As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK’s European allies and the White House.

On Thursday, French President Emmanuel Macron announced his country would formally recognise a Palestinian state in September, the first member of the G7 to do so.

That move was dismissed by Mr Trump, who said it “doesn’t carry any weight”.

Read more from Sky News:
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The UK, French and German leaders spoke over the weekend and agreed to work together on the “next phase” in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid.

Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months.

On Friday, the prime minister said “the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel’s disproportionate military escalation in Gaza are all indefensible”.

Government sources say UK recognition is a matter of “when, not if”, however, it’s thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact.

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Baby Zainab starved to death in Gaza

Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza.

The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory.

President Trump’s trip to Scotland comes ahead of his second state visit to the UK in September.

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Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table.

After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.

Mr Trump is also expected to meet Scottish First Minister John Swinney while in the country.

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Crypto isn’t crashing the American dream; it’s renovating it

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Crypto isn’t crashing the American dream; it’s renovating it

Crypto isn’t crashing the American dream; it’s renovating it

The US housing regulator’s decision to recognize crypto assets in mortgage applications marks a historic shift from exclusion to integration, opening new pathways to homeownership.

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Govt vows to protect ‘pavement pints’ and make it easier for pubs to extend their opening hours

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Govt vows to protect 'pavement pints' and make it easier for pubs to extend their opening hours

“A wave of new cafes, bars, music venues and outdoor dining” could come to the UK – as the government unveils plans to overhaul planning rules and “breathe new life into the high street”.

Under the proposals, ministers also want to reform licensing rules to make it easier for disused shops to be converted into hospitality venues.

In a statement, Chancellor Rachel Reeves said she planned to scrap “clunky, outdated rules… to protect pavement pints, al fresco dining and street parties”.

The reforms also aim to prevent existing pubs, clubs, and music venues from suffering noise complaints when new properties hit the market.

Developers who decide to build near those sites will be required to soundproof their buildings.

Customers drink in an outdoor seating area of a pub in London during pandemic in December 2021
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As part of dedicated “hospitality zones”, permission for al fresco dining, street parties and extended opening hours will be fast-tracked.

The government says the reforms aim to modernise outdated planning and licensing rules as part of its Plan for Change, to help small businesses and improve local communities.

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The rough plans will be subject to a “call for evidence” which could further shape policy.

Business Secretary Jonathan Reynolds said the proposals will “put the buzz back into our town centres”.

“Red tape has stood in the way of people’s business ideas for too long. Today we’re slashing those barriers to giving small business owners the freedom to flourish,” he said.

The hospitality industry has broadly welcomed the changes but argued tax reform was also essential.

Kate Nicholls, chairwoman of UKHospitality, described the proposals as “positive and encouraging”.

However, she added: “They can’t on their own offset the immediate and mounting cost pressures facing hospitality businesses which threaten to tax out of existence the businesses and jobs that today’s announcement seeks to support.”

Read more from Sky News:
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Pubs forced to adapt to survive

While supporting the reforms, Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), had a similar message.

“These changes must go hand in hand with meaningful business rates reform, mitigating staggering employment costs, and a cut in beer duty so that pubs can thrive at the heart of the community,” she said.

In July, BBPA estimated that 378 pubs will shut this year across England, Wales and Scotland, compared with 350 closures in 2024, which it said would amount to more than 5,600 direct job losses.

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Pubs closing at a rate of one a day

Bar chain Brewdog announced this week that it would close 10 sites, partly blaming “rising costs, increased regulation, and economic pressures”.

Andrew Griffith MP, shadow business secretary, said: “Though any cutting of red tape for hospitality businesses is welcome, this is pure hypocrisy and inconsistency from Labour.”

He said the government was “crippling the hospitality industry by doubling business rates, imposing a jobs tax and a full-on strangulation of employment red tape”.

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