Rachel Reeves will unveil plans for a cost of living blitz, including a bid to drive down the cost of the weekly shop by slashing tariffs until 2028 on more than 100 items
Shoppers could save on food staples like baked beans, crisps and margarine under Government plans to shield Brits from rising prices triggered by the Iran war
Chancellor Rachel Reeves will unveil plans for a cost of living blitz on Thursday, including a bid to drive down the cost of the weekly shop by slashing tariffs until 2028 on more than 100 items, including tomato ketchup, marmalade and biscuits.
Tariffs are imposed by the Government on imported goods, with the cost normally passed on to consumers. Potential price reductions would depend on businesses passing the saving on to shoppers.
In a statement to Parliament, Ms Reeves is also expected to unveil a string of money-saving measures, including fare-free travel for school children in England in August.
Drivers were given a boost as fuel duty was frozen until the end of the year, as the Chancellor ditched plans to hike the levy in September.
She has been under intense pressure to abandon plans as prices rise at the pumps in the wake of the closure of the Strait of Hormuz, a critical waterway for around a fifth of the world’s oil and gas.
READ MORE: Keir Starmer delays 5p fuel duty increase to help families with cost of living
Hauliers will also be given a 12-month road tax holiday to help keep shelves stocked and food prices down. It means they will pay £1 at renewal, saving £600 for a typical heavy lorry and £912 for the biggest vehicles.
The Chancellor 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.
“As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”
Keir Starmer said he would “tear down the status quo” to stop working people being clobbered by global crises. Writing in the Mirror, he said: “I know what Mirror readers expect: a government on their side, taking decisions to ease pressures now, and building an economy that works in their interests for the future.
“Because at the end of the day, times like this are a test. Throughout the years of crisis the Tories always made working people pay. In contrast, this Government will always stand by them. And we will build a stronger, fairer Britain in their interests.”
The package comes as cost of living pressures mount at home as the global turmoil triggered by Donald Trump’s war with Iran threatens to derail the Government’s economic plans.
Inflation fell to 2.8% in April, down from 3.3% in March – the lowest level since March 2025. But the dip in price rises – largely driven by the energy price cap being lowered – is expected to be short-lived as the fallout from the Middle East conflict spreads.
Emergency planning is underway ahead of the winter when energy bills are expected to soar. Families have so far been protected from energy bill spikes by the price cap – but the level is predicted to rise by £209 to £1,850 a year from July for a typical household. Ministers are braced for costs to rise further when the cap is reviewed in September.
The Chancellor is expected to target energy bill support to low-income households but she will wait until September before finalising the scale of the package.
She has already signalled that she won’t deliver a Liz Truss-style universal bailout, as the Tories did in 2022 after the Ukraine war sent bills spiralling. Ministers fear unfunded giveaways could push up borrowing costs and inflation, leading to higher mortgage rates.
Meanwhile, Ms Reeves hit back at heckler who shouted at her as she was being interviewed at a petrol station in Leeds. The man, who was driving a truck with two St George’s flags on the roof, shouted “Nigel Farage, go on Nigel”, before telling her: “You’re ruining the country. Get Keir Starmer out.”
He added: “We’ve got English flags on here, Rachel, am I going to get arrested? Look at Rachel Reeves there, with a smile on her face.”
But Ms Reeves told him: “I love our country. I love our country, and one of the things about our country is good manners. Not very British.” She quipped: “He didn’t hear the news about fuel duty.”