Baked beans, gum and olive oil could get cheaper under tariff cut plan
Households could see prices of staples such as baked beans, garlic and avocados fall under the government’s new plans to cut tariffs on 125 “everyday essentials”.
The initiative, which aims to ease the cost of living crisis, follows Chancellor Rachel Reeves’ announcement last week.
Other items earmarked for potential tariff removal include olive and vegetable oils, chewing gum, throat lozenges and cocoa powder.
The Treasury will now consult on the proposed changes and the survey will open on Wednesday and run until 24 June.
There will also be consultations on whether suspending tariffs on certain fertilizers could help farmers combat rising prices resulting from the closure of the Strait of Hormuz.
Ms Reeves said: “The war in Iran is not our war, but it is one to which we must respond and my priority is to keep prices low for households and businesses.
“That’s why we’re freezing fuel duty, increasing the mileage rate for the first time in 15 years and temporarily reducing VAT this summer to help reduce the cost of days out.”
The package was announced by Ms Reeves last week, alongside a range of other measures.
These include last week’s increase in tax-free mileage for the first time since 2011. This rate will increase from 45p per mile to 55p for the first 10,000 miles.
This will be backdated to April 2026. The Treasury estimates three million workers will benefit, one million of whom are self-employed.
Ms Reeves said fuel duty would be frozen until the end of the year, delaying the 5p increase expected to start in September.
A discount was also announced for red diesel.
Ms Reeves announced that VAT will be cut on children’s meals in restaurants and entry to days out.
The list of products affected by the proposed tariff reduction is as follows:
– Garlic
– Gherkins
– Aubergine
– Sweet pepper
– Other peppers (paprika/pimenta)
– Olives (fresh/chilled)
– Olives (for oil production)
– Olives (frozen)
– Plantains (fresh and dried)
– Banana (fresh and dried)
– lemon
– Citrus fruits (various)
– Avocado
– Fresh figs
– Dried figs
– Other fresh fruits
– Frozen fruits
– Dried apricots
– Dried apple
– Dried peaches/nectarines
– Dried pears
– Dried papaya
– Mixed dried fruit
– Mixed nuts
– Mixed fruits and nuts
– Green tea
– Buckwheat
–Fonio
– Quinoa
– Olive oil (extra virgin)
– Olive oil (extra virgin)
– Olive oil (other)
– Margarine
– Mixed fats and oils
– Vegetable oils
– Chewing gum
– Liquorice products
– White chocolate
– Marzipan and pastes
– Throat lozenges
– Candies
– Boiled sweets
– Candies and caramels
– Sugar tablets
– Cocoa paste
– Cocoa powder
– Chocolate (bulk and retail)
– Chocolate bars
– Fruit, nut or grain chocolate
– Chocolate spreads
– Chocolate drink preparations
– Couscous
– Crispy bread
– Gingerbread
– Biscuits
– Waffles and wafers
– Rusks
– Fried bread products
– Bread
– Pizzas and quiches
– Pickled peppers
– Prepared vegetables
– Chips
– Processed potatoes
– Baked beans
– Canned beans
– Canned vegetables
– Preserved tropical fruits
– Candied fruit
– Jams and marmalades
– Preserved citrus fruits
– Mixed canned fruits and nuts
– Tomato ketchup
– Tomato sauces
– Soups and broths
– Soft drinks
– Plant-based drinks
