Reeves set to slash costs on 125 everyday essentials in the UK
Key Points
- The UK Government has launched a consultation on suspending import tariffs on 125 everyday food essentials including olive oil, garlic, avocados, mangoes and baked beans.
- The proposals build on a tariff suspension package announced in April and aim to lower shopping bills during the cost of living squeeze.
- HM Treasury is also consulting on suspending tariffs on certain fertilisers to help farmers cope with rising costs linked to the Middle East conflict.
- The tariff consultation sits alongside an uprating of tax free mileage rates from 45p to 55p per mile and a third extension of the fuel duty freeze.
- The measures form part of the Government's "Great British Summer Savings" package.
Chancellor Rachel Reeves has launched a consultation on scrapping UK import tariffs on 125 everyday food essentials, with olive oil, garlic and avocados on the list.
The proposed cuts cover fresh fruit and vegetables, oils, baked goods, chocolate, sauces and soft drinks. Named items include mangoes, nectarines, vegetable oil and baked beans.
Treasury is also seeking views on suspending tariffs on certain fertilisers to help farmers offset rising input costs tied to the conflict in the Middle East.
The proposals build on a separate tariff suspension package announced in April and form part of a wider cost of living response from the Chancellor.
“The war in Iran isn’t our war, but one we will need to respond to, and my priority is keeping prices down for households and businesses,” said Rachel Reeves, Chancellor of the Exchequer.
She added that the Government is freezing fuel duty, increasing mileage rates for the first time in 15 years and has temporarily cut VAT this summer to lower the cost of days out.
Changes for drivers
The tariff consultation sits alongside the largest ever uprating of tax free mileage rates, which rises 10p per mile and is backdated to April 2026.
The rate for the first 10,000 business miles increases from 45p to 55p, saving a worker driving 6,000 business miles around £120 a year. Up to 2 million employees and 1 million self-employed people are set to benefit, with carers, plumbers and builders among those using their own vehicles for work.
Drivers will also gain from a third extension of the fuel duty freeze running to the end of the year, which Reeves said has saved motorists £120 since last year. Red diesel and rebated biodiesel rates have been cut by over a third to the lowest level in more than two decades.
A one-year vehicle excise duty holiday begins for hauliers on 1 July, recognising the sector’s exposure to high fuel prices and its role in UK supply chains.
The measures fall under the Government’s “Great British Summer Savings” package, which also includes free bus travel for 5 to 15 year olds in England, a VAT cut on children’s meals in restaurants and reduced VAT on admissions to theatres, theme parks and other attractions.
Treasury is inviting businesses and other stakeholders to submit views on the impact of the second tariff package before any final decision is taken on which goods qualify.
