The price of baked beans, garlic, and avocados could be cut under government plans to remove tariffs on 125 “everyday essentials” in a bid to lower the cost of living. The list, published after an announcement by Chancellor Rachel Reeves last week, also includes olive and vegetable oil, chewing gum, throat pastilles, and cocoa powder.
The Treasury will consult on the proposed tariff reductions, with a survey opening on Wednesday and running until June 24. The consultation will also examine whether suspending tariffs on certain fertilisers could help farmers grappling with rising prices caused by the closure of the Strait of Hormuz.
Ms Reeves said: “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.”
The package includes an uprating of tax-free mileage for the first time since 2011, with the rate rising from 45p per mile for the first 10,000 miles to 55p. This will be backdated to April 2026, and the Treasury estimates that three million workers, including one million self-employed people, will benefit.
Fuel duty will be frozen until the end of the year, postponing a 5p rise due to begin in September. Relief was also announced for red diesel, alongside a cut to VAT on children’s meals in restaurants and admission to days out.
