Chancellor to cut tariffs on some food and freeze fuel duty to give families 'breathing space'
BBC News reports on the upcoming Budget, highlighting several measures the Chancellor, John Healey, plans to implement to ease the cost of living.
Key Announcements:
- Cutting Tariffs: The government will remove import tariffs on 100 food items, potentially saving households up to £21 per year when combined with existing suspensions.
- Freeze Fuel Duty: Fuel duty will be frozen again, continuing the 5p duty discount introduced in 2022.
- Tax-Free Mileage: The tax-free mileage rate for up to 10,000 miles of work-related travel will increase from 25p to 35p per mile.
- Carer's Allowance: The government will end the 'cliff-edge' effect for carer's allowance payments.
- Minimum Wage: Healey will announce the new National Minimum Wage rates for 18-20 year olds and the National Living Wage for those aged 21 and over, with reports suggesting a rise of around 3.9%.
Business Secretary Jonathan Reynolds defended the tariff removal, stating it would save around £500 million annually. Other measures include extending the self-employed paternity pay scheme and increasing Post Office drop boxes for parcel sending.
In his Budget speech, Healey emphasized the impact of global events on living costs, pledging to "act where we can make a difference."