"The milkshake tax is another blow to businesses already drowning in complex taxes and soaring fixed costs. If this isn't balanced with meaningful business rates reform for hospitality, leisure, and retail, it's a clear net negative for growth. While the levy targets only packaged drinks, not fresh café-made shakes, it still shakes up a struggling sector, and piles on administrative burden and cost at a time when margins are already diluted and consumer demand dwindles."
"If the Government is serious about boosting the economy, it should be easing financial pressures on businesses and consumers, not reaching for revenue at the first opportunity. Our advice for businesses is to treat this as more than a cost-exercise. Use the lead-in period to review product profitability, sharpen pricing strategies, and assess whether recipe reformulation or alternative product development could better support business goals. Those who prepare early will be in a far stronger position when the levy lands."
The milkshake tax adds another cost and administrative burden to businesses already facing complex taxes, high fixed costs, and weakening consumer demand. The levy applies to packaged drinks only, excluding fresh café-made shakes, but still disrupts a struggling hospitality, leisure, and retail sector. Without meaningful business rates reform, the measure reduces growth prospects by increasing net costs. Businesses should use the lead-in period to review product profitability, sharpen pricing strategies, and consider recipe reformulation or alternative products. Early preparation will improve resilience and position companies to manage the levy’s impact when it takes effect.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]