Chancellor Rachel Reeves has announced plans to suspend tariffs on selected food and drink items, a move expected to reduce the cost of weekly shopping for households. The Labour Party Chancellor revealed the measure amid the ongoing Iran war, aiming to help consumers save money in supermarkets as fears of rising costs persist.
Which Items Are Affected?
Under the new measures, tariffs on items including pasta, juices, tuna, oranges, peaches, and other staples will be cut. These import tariffs will be suspended until the end of 2028, covering approximately £2 billion worth of imports. The government hopes this will translate into cheaper prices at the checkout for shoppers.
Industry Reactions
Andrew Opie, director of food and sustainability at the British Retail Consortium, warned that while any assistance is welcome, cutting tariffs alone will barely offset the rising costs supermarkets face. The announcement follows a meeting between the Chancellor, Environment Secretary Emma Reynolds, and bosses of major supermarkets including Tesco and Sainsbury's on April 1.
Environment Secretary Emma Reynolds stated: "People are worried about what the conflict in the Middle East could mean for their food bills. That is why we are suspending select food tariffs, easing pressure on household budgets while continuing to support British farmers and keep our food supply secure."
Further Perspectives
Karen Betts, chief executive officer of The Food and Drink Federation, described the changes as a "good start." Helen Dickinson, chief executive at the British Retail Consortium, called the meeting "constructive" and noted that while some inflation is inevitable, domestic policy levers can mitigate some inflationary pressures.
Liliana Danila, FDF's chief economist, commented: "The food and drink sector is already feeling the force of this geopolitical shock. As one of the UK's energy intensive industries, manufacturers are facing mounting energy bills, rising transport and packaging costs, and disruption across key supply chains. These pressures are hitting simultaneously and are a significant challenge for businesses to absorb." She added that the current situation is unprecedented and hard to predict, but given the scale and speed of cost increases, it is clear that food inflation will rise in the months ahead, despite companies' best efforts not to pass on price increases.
