Chancellor Rachel Reeves is reportedly planning to remove the exemption for milk-based drinks from the Soft Drinks Industry Levy, a move that has earned her the nickname 'the milk taxer'. The levy currently adds 18p per litre to sugary drinks containing 5g or more of sugar per 100ml, but dairy-based drinks have been exempt until now.
The change, expected to take effect in April 2027, is part of efforts to fill a £20bn budget black hole without breaking Labour's manifesto pledge not to raise income tax. Experts estimate the Treasury could raise between £50m and £100m from the measure.
The nickname 'milk taxer' draws comparisons to Margaret Thatcher, who was dubbed 'the milk snatcher' for ending free school milk in the 1970s. Social media users have drawn parallels, with one posting: 'Once we had Margaret Thatcher the Milk Snatcher now we have Rachel Reeves the milk taxer.'
Tory Shadow Chancellor Mel Stride criticised the plan, saying: 'If these reports are true, Labour’s new milkshake tax moves the goalposts yet again for an industry that’s already cut sugar and made changes responsibly. It will see businesses that played by the rules punished, with products suddenly dragged into the tax net – all to save Rachel Reeves’s skin.'
Meanwhile, uncertainty over the Budget has been blamed for a dip in house prices. Rightmove reported a 1.8% month-on-month fall in average new seller asking prices to £364,833, while surveyors noted a cooling in buyer demand and sales activity, attributed to anticipation of tax-raising measures.
