Some of the items included are pasta, juices, tuna, oranges, peaches and other staples of the weekly shop
Chancellor Rachel Reeves has announced plans to suspend tariffs on selected food and drink to help people save money in the supermarkets amid fears of rising costs.
Some of the items included are pasta, juices, tuna, oranges, peaches and other staples of the weekly shop. These products will have tariffs suspended until the end of 2028, covering over £2billion worth of imports into the UK.
A tariff is a tax imposed by a government on imported goods, which the cost normally passed on to consumers. The tariffs on some of the products included can range from 2% to 50% of the imported cost of the item. These will now be 0%.
However, any potential price reduction may not be immediate and depends on businesses passing the saving on to customers.
The package is focused on products where there is little or no production in the UK, with more items set to be announced after further discussions with farmers and supermarkets.
It comes after the Chancellor held a meeting with Tesco, Sainsbury’s and other major supermarkets to discuss what more can be done to ease the cost of living for customers over fears the Iran war could send food inflation soaring.
The closure of the Strait of Hormuz has caused disruption of fertiliser supplies, which are used to grow fruit and vegetables, while higher fuel costs have also impacted the price of transporting goods.
Food and Drink Federation (FDF), which represents 12,000 food and drink manufacturers, has warned food inflation could reach 9% by the end of 2026. Separately, businesses have told the Bank of England that UK food inflation could reach 7%.
Earlier this month, Government officials drew up a worst-case scenario of potential food shortages, including chicken and pork, if supplies of carbon dioxide (CO2) become impacted.
CO2 is used in the slaughter of some animals. Ministers have been keen to stress there are no shortages yet.
Rachel Reeves said: “It is extremely frustrating to see a war we didn’t start hurting family finances here at home.
“Whether it be through suspending tariffs to make food cheaper, taking £117 off household energy bills, or freezing rail fares and prescription charges, I will support those who need it most.”
Environment Secretary Emma Reynolds said: “People are worried about what the conflict in the Middle East could mean for their food bills.
“That’s why we’re suspending select food tariffs, easing pressure on household budgets while continuing to support British farmers and keep our food supply secure.
“We’re working closely with supermarkets, producers and suppliers to protect family finances and ensure farmers can continue producing high‑quality British food.”
