London Daily

Focus on the big picture.
Tuesday, Jun 16, 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
UK Supreme Court Revises Legal Definition of Deprivation of Liberty
King’s Birthday Honours Recognise Contributions Across Science, Culture and Public Service
UK Ministry of Defence Reports Interdiction of Russian Shadow Fleet Vessel
UK and US Launch Joint Regulatory Programme for Medicines and Healthcare Products
Solicitor General Refers Murder Sentence to Court of Appeal Under Unduly Lenient Scheme
UK Launches £1.6 Million Mobile Museum Initiative to Expand Cultural Access
Judicial Pay Structure Undergoes Government Review Following Senior Recommendations
Government Confirms Nearly 180 New Youth Hubs Across the United Kingdom
UK Government Expands Careers Support Through Partnership with LinkedIn
Digital News Report Highlights Growing Global Concern Over AI and Information Overload
UK Chancellor Reaffirms Fiscal Discipline and Borrowing Reduction Strategy
UK Government Invests £219 Million in Sustainable Aviation Fuel Development
Rolls-Royce Small Modular Reactors Secures Major Swedish Export Contract
Government Confirms Locations for Nearly 180 Youth Hubs Across Great Britain
UK Government Partners with LinkedIn to Expand Employment Support Services
Reuters Institute Report Flags Rising Public Anxiety Over News and Information Overload
UK Government Commits £219 Million to Expand Sustainable Aviation Fuel Industry
Chancellor Convenes Market Engagement Group to Assess UK Economic Outlook and Productivity Risks
Rolls-Royce Wins Multibillion-Pound Swedish Contract for Small Modular Nuclear Reactors
Government to Ban Social Media Access for Under-Sixteens Across the United Kingdom
Government Approves Fast-Tracked Broadcast Merger Reshaping UK's Media Landscape
Resignation of Defence Secretary John Healey Triggers Debate Over UK Military Strategy
Britain Intensifies Diplomatic Efforts to Support US-Iran Ceasefire
Bank of England Faces Tough Interest Rate Choices After Economic Contraction
Belfast Sees Second Day of Anti-Migrant Riots as Police Deploy Water Cannons
UK Economy Shrinks in April as Energy Price Shocks Weigh on Growth
UK to Ban Social Media Access for Children Under 16 From 2027
UK Parliament Opens Week of Fast-Tracked Security and Infrastructure Legislation
Northern Ireland Projects £21 Million Boost From Major Cultural and Sporting Events
UK and Japan Sign Technology Security Pact to Strengthen AI and Supply Chain Cooperation
UK Welcomes US-Iran Peace Breakthrough Aimed at Restoring Strait of Hormuz Shipping
British Forces Intercept Russian Shadow Fleet Oil Tanker in English Channel Sanctions Operation
UK to Ban Social Media for Under-16s Under Landmark Online Safety Expansion
Anti-Immigrant Riots Spread Across Belfast, Raising Security Concerns
Ministry of Defence Opens Europe's Largest Drone Testing Facility in Swindon
Kemi Badenoch Calls for Deregulation to Restore City's Global Competitiveness
UK Housing Market Posts Sharpest June Price Decline in Fourteen Years
NHS Waiting Lists Rise to 7.22 Million as Diagnostic Delays Reach New Highs
Makerfield By-Election Raises Prospect of Labour Leadership Challenge
Bank of England Expected to Hold Interest Rates at 3.75% Despite Growing Policy Divisions
Royal Marines Seize Sanctioned Russian Oil Tanker in English Channel
Prime Minister Keir Starmer Set to Ban Social Media and AI Chatbots for Under-16s
United Kingdom Markets Rally After US-Iran Deal Reopens Strait of Hormuz
Defence Secretary John Healey Resigns Over Military Spending Dispute, Triggering Cabinet Crisis
Royal Navy Takes Part in Trooping the Colour for the First Time in 350 Years
Think Tank Warns Labour's European Union Reset Could Carry Significant Economic Costs
UK Semiconductor Centre and Japan's Rapidus Forge Advanced Chip Manufacturing Partnership
UK and Japan Launch Offshore Wind Compact Backed by £9 Billion in Investment
Starmer and Trump Discuss Iran Peace Efforts and Reopening of the Strait of Hormuz
United Kingdom and Japan Sign £18 Billion Investment Partnership Focused on Clean Energy and Advanced Technology
×