The government is planning to cut tariffs on more than 100 food and drink products, including biscuits, chocolate and dried fruit, as part of a new package of cost-of-living measures aimed at easing pressure on households this summer.
Chancellor Rachel Reeves will outline the plans today in the parliament under a new āGreat British Summer Savingsā initiative, which will also include free bus travel for children aged five to 15 across England during August.
The government said the proposed tariff suspensions on more than 100 agri-food products could deliver consumer savings worth more than Ā£150 million a year. The full list of products will be published next week, with business engagement set to begin at the same time.
Prime minister Keir Starmer said the measures were designed to put āmoney back into peopleās pocketsā at a time when many families continued to feel under financial pressure.
āThis government is focused on practical steps that help right now ā easing pressure on household budgets, supporting parents during the school holidays, and backing British businesses,ā he added.
The tariff review comes alongside wider government action to curb rising living costs amid growing concerns over inflationary pressures linked to the conflict in Iran. Yesterday, the government announced an extension to the 5p fuel duty cut and support measures for hauliers and stronger powers for the Competition and Markets Authority to crack down on companies found to have raised prices unfairly during crises.
However, the government ruled out mandatory supermarket price caps, but said it was in talks with the sector on ways to ease cost-of-living pressures partly driven by the Iran war.
Alongside the tariff plans, Reeves confirmed that children aged five to 15 will be able to travel free on participating local bus services throughout August, with the government committing more than Ā£100 million to fund the scheme and support local bus services.
The government said the free travel scheme, which requires no registration, could save a family with two children around Ā£27 over the summer holidays.
āAs the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain,ā Reeves said.
Official data on Wednesday showed food inflation eased to 3.0 per cent in April, but the Bank of England has said firms it spoke to last month expect it to reach 6 to 7 per cent later this year.