The government has launched a consultation on suspending tariffs on 125 everyday essentials, part of a new package of cost-of-living measures announced by chancellor Rachel Reeves last week.
The proposed package covers products including fresh fruit and vegetables, oils, baked goods, chocolate, sauces and soft drinks. Items listed for potential tariff cuts include garlic, avocados, mangoes, nectarines, olive oil, vegetable oil and baked beans.
The consultation follows an earlier round of tariff suspensions announced in April and forms part of the government’s wider ‘Great British Summer Savings’ package aimed at easing cost-of-living pressures linked to rising global energy and commodity prices amid the conflict in the Middle East.
Reeves said the government’s priority was “keeping prices down for households and businesses”.
“The war in Iran isn’t our war, but one we will need to respond to,” Reeves said. “That’s why we’re freezing fuel duty, increasing the mileage rate for the first time in 15 years and slashed VAT temporarily this Summer to help reduce the cost of days out.”
Alongside the tariff consultation, the government is also seeking views on suspending tariffs on certain fertilisers to support farmers facing higher input costs.
Retailers and wholesalers may also benefit indirectly from new transport support measures announced by the Treasury. The government has increased the tax-free mileage allowance from 45p to 55p per mile for the first 10,000 business miles – the first rise in 15 years – while extending the fuel duty freeze until the end of the year.
Additional support for logistics and agriculture includes a one-year road tax holiday for hauliers from 1 July and a reduction in the rate for red diesel and rebated biodiesel used by farmers.
The measures come as retailers continue to face pressure from elevated operating costs and cautious consumer spending despite signs of easing inflation in some grocery categories.
The broader ‘Great British Summer Savings’ package also includes VAT cuts on children’s restaurant meals and admissions to attractions such as theatres and theme parks, alongside free bus travel for children aged five to 15 in England.
Industry stakeholders and businesses are being invited to submit views on the proposed tariff suspensions as part of the government consultation process.