Chancellor of the Exchequer John Healey has confirmed the removal of import tariffs on over 100 everyday supermarket products as part of his 2026 Budget speech in the House of Commons on October 28. The move is expected to lower costs on items including chocolate, baked beans and gherkins.
According to a BBC report, the Government says removing tariffs from the 100 food items could save households up to £21 per year, or 40p a week, when combined with existing tariff suspensions introduced in June.
Chancellor's Statement on Supermarket Tariffs
Mr Healey told the House of Commons: "To help with the weekly shop I'm suspending tariffs on over 100 supermarket products to keep prices down."
The tariff cuts form part of a series of taxation changes announced in today's Budget.
Other Budget Measures
Other changes include a cut to VAT on electricity being extended to July 2027, taking £50 off the annual price cap. Mr Healey also promised to cut electricity bills by up to 25% for over 10,000 eligible UK manufacturing and industrial firms starting in April 2027.
Higher gambling taxes will be implemented to pay for a high street support package, including increasing machine games duty from 20% to 25% for higher stakes machines. Sellers on online marketplaces will be charged VAT, and Mr Healey announced a £10 million alcohol duty relief for about 2,000 smaller British brewers and cider makers.
Business Rates and Tax Changes
An expansion of the Small Business Rates Relief (SBRR) will run alongside the previously confirmed 20% cut to business rates targeted directly at pubs, social clubs, and eligible live music venues, with the threshold increasing from £12,000 to £18,000 from April 2027. This is predicted to take 70,000 small businesses out of paying any business rates entirely. Mr Healey added that a mechanism will be built in to carve out vapes shops from business rate relief.
The Chancellor also announced a Capital Gains Tax (CGT) relief for the founders of successful firms in the UK, while the UK bank corporation tax surcharge will increase from 3% to 6%.
Reassurance on Working People
Before outlining tax changes, Mr Healey reassured the House of Commons that he has "kept the Labour manifesto promise not to raise tax on working people". He added that he has rejected "broad-based" tax rises, recognising that families and businesses "need this breathing room".
