The Government has launched a consultation on suspending tariffs on 125 everyday essentials, including fruit, oils and pantry staples, as part of a fresh package designed to lower household costs.
The proposed tariff reductions cover a wide range of products, including garlic, avocados, mangoes, nectarines, vegetable oil, olive oil and baked beans.
The Treasury said the move builds on a previous tariff suspension announced in April and is designed to help keep prices down for households and businesses amid renewed cost pressures linked to the conflict in the Middle East.
The Government is also seeking views on whether tariffs should be suspended on some fertilisers to help farmers manage rising input costs.
Chancellor Rachel Reeves said: “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.
“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.”
The announcement comes alongside an increase in tax-free mileage rates for workers who use their own vehicles for work.
The rate has risen by 10p per mile for this tax year, backdated to April 2026. It means workers can now claim 55p per mile for the first 10,000 business miles, up from 45p.
The Treasury said the change will benefit up to two million employees and one million self-employed workers, saving around £120 for someone who drives 6,000 business miles.
Transport Secretary Heidi Alexander said the move would support “the carers, the tradespeople and the public sector workers who keep services running”.
She added: “For too long, they have been expected to shoulder rising costs with support that simply has not kept up.”
The Government said motorists would also continue to benefit from the extension of the fuel duty freeze until the end of the year, which it claimed had saved drivers £120 since last year.
Further support has been announced for farmers and hauliers, with the rate on red diesel and rebated biodiesel cut by more than a third, while hauliers will benefit from a one-year road tax holiday from 1 July.
The measures form part of the Government’s wider “Great British Summer Savings” package, which also includes free bus travel for five to 15-year-olds in England, a temporary VAT cut on children’s meals in restaurants, and reduced VAT on admissions to theatres, theme parks and other attractions.
The Treasury said the package was designed to support families during the cost of living squeeze while helping businesses that rely on summer footfall.
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