Chancellor Rachel Reeves has unveiled plans to reduce tariffs on over 100 everyday essentials, including baked beans, bananas, and olive oil, as the cost of living continues to climb. The proposed cuts aim to ease financial pressure on households and businesses amid ongoing conflict in the Middle East, which has been driving up prices.
List of Products Affected
The comprehensive list spans a wide range of items, from fresh fruits and vegetables to oils, baked goods, chocolate, sauces, and soft drinks. Among the products set to benefit are garlic, gherkins, aubergines, sweet peppers, olives, plantains, bananas, limes, avocados, figs, dried fruits, nuts, green tea, quinoa, olive oil, margarine, chewing gum, chocolate, biscuits, bread, pizzas, baked beans, jams, ketchup, soups, and non-alcoholic beverages.
Consultation and Timeline
A consultation on the proposed changes will run until June 24, though no specific date has been set for when the tariff reductions will take effect. The government is also increasing mileage rates for the first time in 15 years and temporarily slashing VAT this summer to help reduce the cost of days out.
Chancellor Rachel Reeves stated: "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 slashing VAT temporarily this Summer to help reduce the cost of days out."
The full list of products affected by the proposed tariff cuts includes over 125 items, ranging from fresh produce to processed foods and beverages. The government hopes these measures will provide relief to consumers grappling with rising inflation and global supply chain pressures.
