Chancellor John Healey announced a Budget plan featuring import tariff cuts on 100 food items and a fuel duty freeze, aiming to provide families with cost-of-living relief amid ongoing international conflicts.
Removing Import Taxes Saves Households Money
Business Secretary Jonathan Reynolds defended the government’s approach to food imports. Removing import taxes from 100 food items—including garlic, gherkins, boiled sweets, plant-based drinks, kerosene, and fertilisers—builds upon earlier tariff suspensions introduced in June on goods such as pasta, fruit juice, and tuna.
According to government calculations, the combined tariff removals could save individual households up to £21 per year, amounting to about 40p a week. Across the economy, officials estimate the food measures will save around £500m annually.
Fuel Duty Freeze and Mileage Rate Adjustments
Motorists will see another extension to fuel relief. The 5p duty discount, initially introduced in 2022 as a 12-month measure, is set to continue as part of a confirmed fuel duty freeze.
At the same time, the administration is making permanent a 55p per mile tax-free mileage rate for workers driving up to 10,000 miles annually for professional travel. For mileage exceeding that threshold, the rate will rise from 25p per mile to 35p.
Wages, Benefits, and Political Opposition
Reporting from the Times indicates that the government may moderate the pace of pay increases for younger workers on the National Minimum Wage.
| Wage Category | Current Hourly Rate | Projected Rate |
|---|---|---|
| Ages 18–20 Minimum Wage | £10.85 | £11.27 |
| National Living Wage (21+) | £12.71 | £13.20 |
Additional adjustments include replacing the carer’s allowance cliff-edge with a taper mechanism and granting self-employed fathers two weeks of paternity pay, addressing a gap that previously caused some to miss out on payments reaching up to £194 a week.
The package has drawn sharp pushback from opposition figures. Conservatives said everyday fixes had already been wiped out by higher borrowing costs, taxes and inflation. Shadow Chancellor Andrew Griffith called the plan an insult to families.
