Import Taxes Dropped on Marmalade, Gherkins and 100 More Goods
Chancellor John Healey is removing import taxes on marmalade, gherkins and more than 100 other products ahead of the Budget. The government describes the move as a way to give families "breathing space" with the cost of living.
The marmalade tariff of 20%, plus a £19 charge per 100kg imported, will be suspended. The government says that, combined with suspensions introduced in June on products such as pasta, fruit juice and tuna, households could save up to £21 a year.
Other goods on the list include:
- chocolate-coated wafers and waffles
- toffees, caramels and similar sweets
- throat pastilles and cough drops
- plant-based drinks, including soya, nut, cereal or seed
Healey said the wars in Iran and Ukraine had "hit families here at home through higher everyday costs". He added: "We can't control global events, but we can act where we can make a difference."
Other measures in the package
The government is also making permanent the 55p per mile tax-free mileage rate for people driving up to 10,000 miles for work. Above that distance the rate rises from 25p to 35p per mile.
Self-employed fathers, who have previously missed out, will get two weeks of paternity pay of up to £194 a week. Hundreds of extra Post Office drop boxes will be rolled out to make sending parcels easier.
The BBC understands that fuel duty will be frozen again in the Budget, and that the 5p duty discount, first introduced in 2022 for 12 months and extended ever since, is set to continue.
Minimum wage and political reaction
The Times reports that pay for 18 to 20-year-olds on the National Minimum Wage is likely to rise by 3.9%, from £10.85 an hour to about £11.27. That is far below the 26% rise the Labour government has announced for the minimum wage since returning to power in 2024. Labour's manifesto had promised to remove "discriminatory age bands".
The same report says the National Living Wage for over-21s, currently £12.71 an hour, is set to rise by 3.9% to £13.20.
Prime Minister Andy Burnham said the government was "taking on the big challenges facing the country", but that this did not mean "losing sight of the everyday problems that cost people money or simply aren't fair".
The Conservatives were unimpressed. Shadow chancellor Andrew Griffith said: "Shoppers face rising costs at the till and families are struggling to make ends meet, but Burnham's plan is cheaper gherkins. This is an insult to families hammered by Labour's tax rises."
Source: BBC News