Chancellor Rachel Reeves has released a list of 125 'everyday essentials' that will become cheaper following her tariff cuts, designed to alleviate the cost of living crisis. The list includes items such as avocados, quinoa, oat milk, olive oil, chocolate, and baked beans. This initiative is part of the 'Great British Summer Savings' scheme.
Consultation and Survey
The Government has published the list and will open a consultation on Wednesday, running until June 24. The Treasury will also consider whether to suspend tariffs on certain fertilisers to help farmers facing rising costs due to the closure of the Strait of Hormuz.
Chancellor's Statement
Ms 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 slashed VAT temporarily this summer to help reduce the cost of days out.'
Additional Measures
The package announced last week includes an uprating of the tax-free mileage rate for the first time since 2011. The rate will rise from 45p per mile for the first 10,000 miles to 55p, backdated to April 2026. The Treasury estimates that three million workers, including one million self-employed individuals, will benefit.
Fuel duty will be frozen until the end of the year, postponing a 5p rise due in September. Relief was also announced for red diesel. A cut to VAT on children's meals in restaurants and admission to days out was also included.
Grocery Price Inflation
Grocery price inflation slowed in May, with supermarket prices 3.1% higher than a year ago, down from April's 3.8% and March's 4.3%, according to Worldpanel by Numerator. Shoppers used promotions to keep costs down, with 30.3% of sales involving a deal last month, up from 28.4% a year ago. Spending on full-price items grew only 0.1%.
Ocado remained the fastest-growing grocer with sales up 10.2% year on year, though this is its slowest growth since July 2024. Discounter Lidl reached a record market share of 8.6% over the 12 weeks to May 17, securing its position as Britain's fifth largest grocer behind Tesco, Sainsbury's, Asda, and Aldi. Tesco sales increased by 3.2%, with market share rising to 28.2%, while Sainsbury's sales grew by 3.1% to a 15.2% share. Waitrose sales were up 3%, and Marks & Spencer saw grocery sales rise 9.3% over the quarter.
List of Everyday Essentials
The full list includes: garlic, gherkins, aubergines, sweet peppers, other peppers (capsicum/pimenta), olives (fresh/chilled, for oil production, frozen), plantains (fresh and dried), bananas (fresh and dried), limes, citrus fruits (various), avocados, fresh figs, dried figs, other fresh fruits, frozen fruits, dried apricots, dried apples, dried peaches/nectarines, dried pears, dried papaya, mixed dried fruit, mixed nuts, mixed fruit and nuts, green tea, buckwheat, fonio, quinoa, olive oil (extra virgin, virgin, other), margarine, mixed fats and oils, vegetable oils, chewing gum, liquorice products, white chocolate, marzipan and pastes, throat pastilles, sugar confectionery, boiled sweets, toffees and caramels, sugar tablets, cocoa paste, cocoa powder, chocolate (bulk and retail), chocolate bars, chocolate with fruit, nuts or cereal, chocolate spreads, chocolate drink preparations, couscous, crispbread, gingerbread, biscuits, waffles and wafers, rusks, toasted bread products, bread, pizzas and quiches, pickled peppers, prepared vegetables, crisps, processed potatoes, baked beans, preserved beans, preserved vegetables, preserved tropical fruit, candied fruit, jams and marmalades, preserved citrus fruits, mixed preserved fruit and nuts, tomato ketchup, tomato sauces, soups and broths, non-alcoholic beverages, and plant-based drinks.
