Chancellor Rachel Reeves is set to announce a package of measures aimed at easing living costs, including free bus travel for children in England during August and cuts to tariffs on certain food imports. The plan, dubbed the 'Great British summer savings scheme', will be outlined in a Commons statement on Thursday.
Under the scheme, children aged 15 and under in England will be able to travel on buses for free throughout August. Reeves said the initiative is designed to help families enjoy the summer amid rising costs.
The chancellor will also announce the removal of tariffs on imports of biscuits, chocolates, and dried fruits, in a bid to reduce prices for consumers. The Treasury will consult on further details of the food tariff cuts.
The measures come after Prime Minister Keir Starmer confirmed the postponement of planned fuel duty increases due in September and December, and a 12-month vehicle tax holiday for lorry drivers. The fuel duty freeze has been criticised by the Resolution Foundation, which said high-income households would benefit most, with the richest fifth gaining more than twice as much as the poorest fifth.
The Treasury estimated the cost of the motorist package at about £400m, with funding details to be set out by Reeves on Thursday. A previous plan to secure a voluntary deal with supermarkets on cut-price basic foods was dropped after criticism from retailers, including M&S chief executive Stuart Machin who called it 'completely preposterous'.
The living costs package is being introduced against a backdrop of expected inflation rises due to the Iran conflict, which has also dampened growth hopes. Reeves is expected to address how she will handle rising utility bills this winter, but has ruled out a universal rescue package similar to Liz Truss's 2022 plan.
