Chancellor Rachel Reeves is set to unveil the Government's cost of living strategy this morning as she faces mounting pressure over energy bills and food prices. Ms Reeves, who was heckled by a member of the public on Wednesday, will outline the package to MPs in the House of Commons later today, with her appearance expected around 11:30 am.
Key Measures Teased
Ms Reeves has hinted at several potential policies, including free summer bus rides for children and tariff cuts on some food imports. Speaking ahead of the announcement, she said: "My number one priority is protecting households from rising costs. This summer I want every family to be able to enjoy themselves, that's why we're launching the Great British summer savings scheme, and why we're helping kids with free bus travel throughout August."
The Prime Minister also revealed that Labour plans to give British hauliers a 12-month vehicle tax holiday. During Prime Minister's Questions, he stated: "We are giving our hauliers a 12-month vehicle tax holiday, helping to keep prices down, and we are backing drivers by extending the freeze in fuel duty for the rest of the year." Another element of the plan includes cutting duty on red diesel used by farmers by a third.
Energy Bill Support Ruled Out
Ms Reeves is expected to rule out "massive unfunded spending commitments" that would provide universal energy bill support this winter. The economic impact of the US-Israeli conflict with Iran has disrupted oil prices globally, affecting the UK's financial outlook. The Chancellor is keen to avoid repeating the mistakes of Liz Truss' disastrous Ukraine war promise of a £40 billion package, which ultimately was predicted to cost families more in the long run.
The package is designed to form a "Great British summer savings scheme" aimed at mitigating the effects of rising global oil prices and the broader economic fallout from international conflicts.
