Chancellor John Healey is cutting import taxes on staple food items and freezing fuel duty before the Budget to ease cost-of-living pressures following global conflicts.
We can’t control global events, but we can act where we can make a difference,
said Chancellor John Healey. He announced a pre-Budget package of economic measures including tariff relief on everyday goods and another freeze on fuel costs.
The policy adjustments aim to give households breathing space
. This comes as international instability drives persistent inflation.
Healey Blames Global Conflicts for Financial Squeeze
The chancellor pointed to external pressures as the cause of the squeeze felt by ordinary citizens. Conflicts in Iran and Ukraine have hit families at home through higher everyday costs.
We can’t control global events, but we can act where we can make a difference.
John Healey, Chancellor
Business Secretary Jonathan Reynolds defended the plan to remove tariffs from 100 food products. The package also includes structural tweaks.
The government will permanently raise tax-free mileage rates for working drivers.
Tariff Cuts and Fuel Freezes Hit Wednesday Budget
The fiscal event on Wednesday incorporates targeted tax removals. These build on suspensions enacted during the summer months.
Eliminating tariffs on select groceries will save households up to £21 per year. This amounts to roughly 40p saved each week when combined with prior exemptions.
The wider tariff relief program is projected to generate roughly £500m in annual savings. This includes summer adjustments covering items like tuna, fruit juice, and pasta.
The administration plans to extend the existing 5p fuel duty discount. This relief measure first appeared in 2022 and has been extended ever since. The government is also implementing a fresh freeze on fuel duty rates.
Treasury Makes Tax-Free Mileage Rates Permanent
The Treasury is making a 55p per mile tax-free mileage rate permanent for motorists who drive for professional purposes. This covers up to 10,000 annual miles.
For work-related travel exceeding that threshold, the tax-free allowance will climb from 25p per mile to 35p per mile.