Shoppers could save on the cost of biscuits and chocolate as part of a package of measures being set out by Rachel Reeves to ease the impact of the Iran war.
The Government is cutting import tariffs on more than 100 types of product in a move that is expected to save consumers more than £150 million a year.
The Chancellor also set out a “Great British Summer Savings” scheme, including free bus travel for children in England during the school holidays in August.
In the Commons on Thursday, Ms Reeves will give details of policies to tackle the cost-of-living squeeze triggered by Donald Trump’s war in the Middle East but is not expected to announce immediate help with rising energy bills.
The household energy price cap is predicted to rise by £209 a year from July after the closure of the Strait of Hormuz pushed up global oil and gas prices.
Ms Reeves may set out more details of her contingency planning but she is expected to wait until September before finalising any package of targeted support for households over the winter months, when more energy is used.
The plan to suspend tariffs on some food imports is part of the Government’s wider effort to combat rising prices.
The full list of products will be published next week but is expected to include biscuits, chocolate, dried fruit and nuts.
Chief Secretary to the Treasury Lucy Rigby declined to “speculate” on the amount the measure could knock off the price of the foods.
“We can’t be exact about that, because obviously it’s about how supermarkets set their pricing,” she told BBC Radio 4’s Today programme on Thursday.
The cost of temporarily suspending the tariffs to the Exchequer would be around £40 million, she said.
We know that families are still feeling the cost of living pressure, so we’re delivering immediate support.
— UK Prime Minister (@10DowningStreet) May 21, 2026
Free bus travel for children this August and action to cut the cost of everyday food.
Helping families get through the holidays and putting money back into people’s… pic.twitter.com/fwhIDi7wai
Prime Minister Sir Keir Starmer said: “We know many hard‑working families are still feeling the squeeze and too often think they have to hold back.
“By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we’re putting money back into people’s pockets and making life that bit easier.
“This government is focused on practical steps that help right now — easing pressure on household budgets, supporting parents during the school holidays, and backing British businesses.”
Good news for families - every child aged 5-15 in England will travel free on buses this summer, with unlimited journeys, no registration required, and no cost to families.
— Rachel Reeves (@RachelReevesMP) May 21, 2026
Our economic plan is the right one. Tackling the cost of living and building a stronger Britain.
The free bus travel scheme will allow every child aged five to 15 in England to travel on participating local routes.
The Chancellor is committing more than £100 million to fund the free fares scheme and to support bus services facing increased costs.
Ms Reeves said: “My number one priority is protecting households from rising costs.
“This summer I want every family to be able to enjoy themselves, that’s why we’re launching the Great British Summer Savings Scheme, and why we’re helping kids with free bus travel throughout August.
“As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”
The latest package comes after the Government announced an extension of the 5p cut in fuel duty until the end of the year, along with a tax break for hauliers and help with red diesel costs for farmers.
Ms Rigby did not deny reports that Ms Reeves could announce a rise in the 45p-per-mile rate which has been unchanged since 2011.
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation fell to 2.8% in April, down from 3.3% in March – and the lowest level since March 2025.
But this was largely driven by regulator Ofgem lowering the energy price cap from the start of April by 7%, or £10 a month, for the average household using both electricity and gas, which was pushed down by Government measures to reduce bills.
Inflation is expected to surge back up as the conflict in the Middle East has sent fuel prices soaring and the energy price cap is expected to increase significantly from July when it is next updated.
Energy analyst Cornwall Insight’s prediction for Ofgem’s cap from July to September now stands at £1,850 for a typical dual fuel household, an increase of 13% on April’s £1,641 annual cap.
Ministers are wary of a Liz Truss-style universal bailout for all households, warning that unfunded giveaways could trigger an increase in government borrowing costs and inflation, feeding through to higher mortgage rates, which would end up leaving people worse off.
Ms Rigby told Sky News: “The Chancellor was clear that she wants to monitor the situation, and then she’s going to intervene in a targeted way if the circumstances demand it.”
Ms Reeves is “not going to rush to any sort of universal action” that proved to be “hugely costly for the taxpayer” under the previous Tory government, the Chief Secretary to the Treasury said.
Conservative shadow chancellor Sir Mel Stride told the Press Association: “I don’t think it’s going to make a massive difference if a packet of peanuts is a bit cheaper or a chocolate bar is slightly cheaper than it would otherwise have been.
“These (cost-of-living) pressures have arrived because of the decisions that the Chancellor took. She put up taxes, particularly on businesses, which stoked inflation, slowed the economy, borrowed a lot of money, which has stoked inflation as well. And we’ve ended up in a very weak and fragile position just as we’re going into additional pressures now because of the Middle East and an increase in oil and gas prices.”
