Will extending the 'sugar tax' leave a sour taste?

The government is consulting on extending the existing "sugar tax" on soft drinks to pre-packaged milkshakes and lattes, ending the exemption on milk-based products and adding in non-dairy substitutes such as oat milk. It would, as now, only apply to shop-bought products, rather than those found in fast food joints or restaurants.

- SEAN O'GRADY

The Treasury has also confirmed proposals to reduce the maximum amount of sugar allowed in drinks before they become subject to the tax from 5g to 4g per 100ml. There has already been some strong reaction...

What’s the idea?

The sugary drinks tax, or soft drinks industry levy (SDIL) to give it its proper title, was proposed by then chancellor George Osborne in his 2016 Budget and implemented by the Conservatives in 2018. No doubt, raising money for the Treasury was one motivation, but so was reducing the amount of money the NHS had to spend dealing with the rising incidence of tooth decay, obesity and diabetes, especially among the young.

At the time there were concerns that if the tax was applied to milk-based drinks it might affect the intake of calcium, so products based around milk were exempted. Subsequent experience suggests that very little calcium is sourced from milkshakes and the like – 3.5 per cent – and that the benefits of reducing sugar intake outweigh the risk of reduced calcium intake among the young.

Has it worked up to now?