UK budget announces tariff cuts on 100 food items, saving households £21 a year
The 2026 Budget includes five “everyday fixes”, notably removing tariffs on more than 100 grocery staples.
By Felo News Desk · Published
Prime Minister Andy Burnham and Chancellor John Healey announced a package of five “everyday fixes” ahead of the Wednesday Budget, including tariff removals on more than 100 food items that are expected to save households about £21 a year.
What happened
The government said it will eliminate tariffs on a list of everyday food products, ranging from garlic and gherkins to toffees, plant‑based beverages and chocolate‑coated waffles. The Treasury estimates the measure will reduce grocery bills by roughly £21 per household over a year. In parallel, the mileage rate for work‑related driving will be locked at 55p per mile for the first 10,000 miles, with rates above that rising from 25p to 35p. Additional measures include extending parental pay to 150,000 more parents and a gradual tapering of the carer’s allowance.
What the reports add
Both Independent articles list the same product categories, but the earlier bulletin (published 27 Oct) adds “kerosene fertilisers” and “heating oil” among the items receiving tariff cuts, while the later piece (published 26 Oct) focuses on the food list and mentions the expected impact on three million employees and self‑employed workers. The earlier source also notes extra Post Office drop boxes and £432 million earmarked for homelessness services, details not repeated in the later article.
What was said
Prime Minister Andy Burnham told the Independent, “We are taking on the big challenges facing the country. But that doesn’t mean losing sight of the everyday problems that cost people money or simply aren’t fair.” Chancellor John Healey added, “Today's everyday fixes are just a small part of what we are doing to give families a bit of breathing space.”
How it came about
The tariff cuts are part of the government’s response to rising living costs, following weeks of public pressure on food‑price inflation. Felo previously reported on related cost‑of‑living measures in its coverage of the 2026 Budget’s broader fiscal plan (target-price-cuts-holiday). The current announcement builds on those earlier commitments by targeting specific grocery items.
Key facts
- Tariffs on more than 100 food items will be removed, saving households about £21 a year. (independent.co.uk)
- The mileage rate for work‑related driving is locked at 55p per mile for the first 10,000 miles. (independent.co.uk)
- Parental pay will be extended to 150,000 additional parents annually. (independent.co.uk)
