UK sugar tax to be extended to more soft drinks and milkshakes; markets rally ahead of the budget – as it happened

Britain will end the exemption for pre-packaged milkshakes and milky coffees from an existing tax on sugary drinks from January 2028, the health department has announced.The sugar tax, also known as the soft drink industry levy (SDIL), is a tax on pre-packaged drinks such as those sold in cans and cartons in supermarkets.It was introduced by the Conservative government in 2016 to help drive down obesity, particularly among children.The Health Department has announced that:the government will reduce the current lower threshold at which SDIL applies from 5g of total sugars per 100ml to 4.5g of total sugars per 100mlthe government will remove the current exemption for milk-based drinks with added sugar

UK to extend sugar tax to cover bottled milkshakes and pre-packaged lattes

Sweet-toothed consumers face paying more for bottled milkshakes and some fizzy drinks after the government confirmed plans for a tougher sugar tax.Designed to tackle obesity, the levy currently applies to drinks with a sugar content of 5g per 100ml. However, after a public consultation this is being cut to 4.5g per 100ml, meaning it could cover hundreds more products.The health secretary, Wes Streeting, told the Commons on Tuesday that an exemption for milk-based drinks would also end

Peak pizza? Domino’s boss who launched shift towards chicken ousted

The boss of Domino’s Pizza Group who suggested the UK may have reached peak pizza as he expanded the chain into fried chicken has been ousted after tensions with its board.Andrew Rennie is leaving after just two years at the helm and will be replaced on an interim basis by the company’s chief operating officer, Nicola Frampton, while Domino’s searches for a new leader.Rennie, who worked for Domino’s for more than two decades, has sought to shift Britain’s biggest pizza delivery company towards fried chicken, telling the Financial Times earlier this month there was not “massive growth” left in the UK’s pizza market. He said chicken was “the fastest-growing protein” in the world.It is understood that there was friction between Rennie and the board over his focus and approach to the business, although the statement from Domino’s said he was stepping down “by mutual agreement”

EasyJet profits climb as package holidays sell well despite price rises

EasyJet has reported a rise in annual profits as strong demand for its package holidays to destinations including Tenerife and Lanzarote offset more difficult trading for its airline.The owner of Europe’s second-biggest budget airline upgraded its outlook for its holidays division, where it raised prices by an average of 5% to £698 for each break.EasyJet said it had invested in longer leisure and city routes, to Cape Verde, Marrakech, Turkey and Egypt. Its most popular package holiday destinations were Mallorca, Tenerife, Costa Blanca, Dalaman and Lanzarote. Top city breaks included Amsterdam, Paris, Prague, Krakow and Barcelona

FCA makes inquiries into WH Smith accounting error that wiped almost £600m off value

The City watchdog has contacted WH Smith to find out more about its accounting error that wiped almost £600m off the company’s stock market value overnight and led to the departure of its chief executive.The Financial Conduct Authority (FCA) said it had started making inquiries to assess whether the company had breached UK disclosure rules for listed companies, but was yet to launch a formal investigation.“We are aware of the reports and we are engaging with the firm,” a spokesperson said.The newspaper, books and stationery chain cut financial forecasts in August and launched an independent review led by Deloitte after it discovered an accounting blunder at its North American arm.The revelation came just a few months after the chain sold its high street business, which has since been rebranded as TGJones by its new owners

UK bank shares rise after reports of budget tax reprieve

UK bank shares have jumped as investors grow increasingly confident that the industry will be shielded from tax rises in Rachel Reeves’s budget this week.Shares in some of the UK’s largest high street lenders rose more than 2% on Tuesday, after reports that the Treasury had asked the sector to issue supportive statements about the following day’s budget, raising expectations they would be spared a further levy.Lloyds rose by 3.8%, NatWest went up 3.7% and Barclays added 2