Reeves plans free bus travel for some, cheaper biscuits and chocolate | UK | News
Millions of families will benefit from free bus travel for children and cuts to food and drink imports this summer, as Chancellor Rachel Reeves prepares to unveil a cost-of-living support package on Thursday aimed at easing the financial pressure of rising prices due to conflict in the Middle East.
At the heart of the package is a scheme to give children aged 5 to 15 free use of England’s local bus network throughout August; The initiative will cost the Treasury more than £100 million when support for bus operators is taken into account.
What tariffs is the government reducing?
Alongside the travel offer is also a comprehensive suspension of import duties covering more than 100 products. Biscuits, chocolate, dried fruits and hazelnuts are among those said to be cheaper at the checkout, but the definitive list will not be published until next week. Taken together, the tax cuts are expected to put more than £150 million into shoppers’ pockets within a year.
The measures form part of a wider Government strategy to tackle inflation, following a series of previous interventions including extending the fuel duty cut until the end of the year, tax relief for transport companies and help with red diesel costs for agricultural businesses.
What did Keir Starmer and Rachel Reeves say about the support package?
Prime Minister Sir Keir Starmer said: “We know many hard-working families are still feeling the pressure and often feel like they need to hold back. By giving every child a free bus ride throughout August and slashing tariffs on everyday groceries, we’re putting money in people’s pockets and making life a little easier.”
The Chancellor has stated that protecting households from rising costs is his top priority. “I want every family to be able to have fun this summer, which is why we’re launching the Great Britain Summer Savings Scheme and that’s why we’re helping children with free bus travel throughout August,” he said, adding that his economic approach remained appropriate as the conflict in Iran continued to drive up domestic prices.
What will happen to energy bills this summer?
Despite the wider package, the Chancellor is not expected to announce immediate relief on energy bills on Thursday, GB News reports. The household energy price cap is expected to rise by £209 a year from July following the closure of the Strait of Hormuz, which has caused global oil and gas prices to soar. According to energy consultancy Cornwall Insight, a typical dual-fuel household can expect to pay around £1,850 under the cap between July and September, a 13 per cent increase on the £1,641 cap imposed in April.
Any targeted support for winter energy costs is expected to be approved separately in September.
What is the current situation of inflation?
The latest ONS data showed inflation fell to 2.8 per cent from 3.3 per cent in April; But economists warned that the recovery was due to Ofgem’s seven per cent cap cut on energy prices rather than a real easing of underlying price pressures.
While ministers have warned that spending without specific funding could spook bond markets and push up mortgage rates, the Government has stopped short of overall universal support.
