London Daily

Focus on the big picture.
Friday, Sep 04, 2026

Sugar and salt tax will add £160 a year to grocery bills, industry warns

Sugar and salt tax will add £160 a year to grocery bills, industry warns

Poorest families could be hit hardest by plans to pass on costs of anti-junk food policies to manufacturers
Annual grocery bills will rise by £160 a year if the UK government passes on the cost of its new policies on recycling and advertising of sugary and salty snacks, industry leaders have warned.

Poor families will be hit hardest with an 11% increase in the cost of their shopping, the equivalent of their entire yearly spend on fresh vegetables, said the Food and Drink Federation.

“The suggestion that we should introduce further food taxes at this time is madness. It is an insult to the hardworking families of this country to be told what to do by those who can’t begin to imagine how tough the last year has been,” said Ian Wright, the chair of the industry body.

In a report, Eating into Household Budgets: the Government’s Recipe for Food Price Inflation, The FDF put the cost of new government policies around public health and sustainability at £8bn.

It says this is before factoring in potential new taxes on salt and sugar as outlined in Henry Dimbleby’s recent National Food Strategy report.

Last week, ministers were urged to levy a £3bn sugar and salt tax as part of a “once-in-a-lifetime opportunity” to break Britain’s addiction to junk food, cut meat consumption by nearly a third and help tackle the climate crisis following Dimbleby’s report.

The Labour party said it was a “massive wake-up call” to shift the dial on food education encouraging all ages into healthier eating.

But the industry fears the cost of forthcoming government policies is already endangering some domestic businesses.

The FDF say the new policy to make the producer responsible for post-consumer waste will cost £1.7bn, a deposit return scheme on food and drink packaging will cost them £850m, and the introduction of advertising restrictions on fatty, salty and sugary foods £833m.

“Food and drink manufacturers are close to breaking point,” said Wright after a year that included disruption to the supply of food caused by Brexit and Covid.

The FDF said local producers are finding margins squeezes with the price of food commodities such as grain, sugar and dairy rising – up 17% since the beginning of the year, according to Andy Haldane, the Bank of England’s former chief economist.

“If the government is serious about levelling up it needs to incentivise the sector and not pile on extra costs,” the FDF said.
Newsletter

Related Articles

0:00
0:00
Close
Breeding Tropical Mosquitoes Discovered in East London
Sadiq Khan Agrees to Search of Digital Communications in Palantir Lawsuit
Scottish Protesters Call for Moratorium on AI Data Centre Expansion
Uber Drivers Bring London Class Action Over Algorithmic Management
Reform UK Accepts £4 Million Donation From Cryptocurrency Billionaire Pardoned by Trump
Justice Secretary Tightens Early Release Scheme to Exclude Manslaughter Offenders
Kemi Badenoch Reshuffles Conservative Team as Reform UK Pressure Grows
British Mortgage Rates Rise as Global Bond Sell-Off Pushes Up Borrowing Costs
UK Records Hottest Summer on Record in 2026
UK Government Urges Households to Stock Essential Supplies Ahead of Severe El Niño Risk
UK Prepares Targeted Sanctions Over Israeli Settlements in West Bank
Reform UK Faces Electoral and Police Scrutiny Over Foreign Donation Allegations
UK and France Expand Channel Migration Cooperation as Trade Tensions Surface
UK Marks Merchant Navy Day With Tribute to Civilian Seafarers
Burnham Pays Tribute to Two Police Officers Killed on Duty in Northern England
Booking.com Left Fake Downing Street Listing Online for Two Months, Which Says
Burnham and Macron to Review UK-France Cooperation on Channel Crossings
UK Business Confidence Improves Slightly but Investment Concerns Persist
Burnham Faces Pressure Over Future North Sea Oil and Gas Licences
Burnham Pushes Wider English Devolution Through ‘Number Ten North’
British Chambers of Commerce Raises 2026 UK Growth Forecast to 1%
Keir Starmer Resigns as Holborn and St Pancras MP, Triggering By-Election
UK Chancellor Faces Tighter Budget Headroom as Long-Term Borrowing Costs Rise
UK Government Weighs Thames Water Nationalisation as Financial Crisis Deepens
Prime Minister Andy Burnham Faces First Commons Questions Over Tax and Spending Plans
Eleven British Seafarers Receive Merchant Navy Medal
Which? Creates Fake 10 Downing Street Rental Listing to Expose Booking.com Vetting Weaknesses
BP Appoints New Chairman in Effort to Stabilise Leadership
Aberdeen Sells Hydrogen Bus Fleet at Heavy Loss After Green Transport Experiment
UK Records Hottest Summer on Record as Climate Change Intensifies Extreme Heat
Scotland Pledges to End Temporary Accommodation for Children and Build 111,000 Affordable Homes
DNO Agrees $396 Million Deal to Acquire Capricorn Energy
Uber and Wayve Launch UK’s First Supervised Autonomous Ride-Hailing Service in London
Britain Expected to Avoid New US Tariffs Targeting European Union
Middle East Conflict Pushes UK Energy Costs Higher and Revives Inflation Concerns
UK Growth Forecast Cut to 1% Through 2027 as Youth Unemployment Is Projected to Rise
Andy Burnham Links Weak UK Growth to Brexit in First Full Commons Session as Prime Minister
Keir Starmer Resigns as MP, Triggering Holborn and St Pancras By-Election
UK Business Confidence Improves but Remains Deeply Negative
Aberdeen Hydrogen Bus Sale Recovers Just Six Pence for Every Pound Invested
Which? Exposes Booking.com Verification Failures With Fake 10 Downing Street Listing
British Business Bank Invests Up to £46 Million in Deep-Tech Startup Fund
Scottish Government Puts Violence Against Women at Center of Legislative Program
FCA Eases UK IPO Rules to Strengthen London’s Listing Market
UK Likely to Avoid Next US Tariff Measures as Washington Targets EU
Macron Visits UK for Bayeux Tapestry Exhibition and Border Security Talks
British Chambers of Commerce Cuts UK Growth Outlook to 1% for 2026 and 2027
Keir Starmer Resigns as MP for Holborn and St Pancras, Triggering By-Election
Prime Minister Andy Burnham Unveils Devolution and Cost-of-Living Agenda
UK Borrowing Costs Surge as 30-Year Gilt Yield Reaches 5.88%
×