Lower food costs could be on the way

Could your weekly shop become cheaper?

The government has announced a major new package aimed at helping households with the cost of living, including plans to cut tariffs on more than 100 everyday essentials.

A new consultation has been launched to explore suspending tariffs on a wide range of products many people buy every week. The proposals cover everyday essentials including fresh fruit and vegetables, vegetable oils, baked goods, chocolate, sauces, soft drinks and more.

If introduced, the changes could help reduce costs for both businesses and consumers, easing pressure on household budgets at a time when many families are still feeling the squeeze.

The government is also seeking views on suspending tariffs on certain fertilisers to help support farmers facing rising costs linked to ongoing instability in the Middle East.

Bigger savings for drivers

Alongside the consultation, the government has confirmed the largest increase in tax-free mileage rates ever introduced.

For the first time in 15 years, tax-free mileage rates will rise by 10p per mile this tax year, backdated to April 2026, to help workers with rising travel costs.

The rate for the first 10,000 business miles will increase from 45p to 55p per mile. That means someone driving 6,000 business miles a year could save around £120.

Up to two million employees and one million self-employed workers are expected to benefit from the changes.

More help for families this summer

The moves follow the launch of the Great British Summer Savings initiative, designed to make days out more affordable for families.

Under the scheme, children aged between five and 15 will be able to travel for free on participating local bus services this summer, with unlimited journeys and no registration or fare required.

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.”