Government Announces Measures to Address Cost of Living Pressures

Officials announced a series of steps intended to ease cost of living pressures linked to recent rises in oil and gas prices. The measures focus on workers who rely on vehicles for their jobs and include adjustments to existing tax relief rates. The largest change raises the tax-free mileage rate by 10 pence per mile, backdated to April 2026.

This marks the first increase in 15 years and is expected to reduce the tax burden for drivers who use their own vehicles for work.

The fuel duty cut was extended through the end of the year. Officials also introduced free bus travel for children during the summer holidays and a temporary reduction in VAT on tickets for summer attractions and children's meals.

A £120 million package was allocated to the ceramics sector, which supplies components for aerospace manufacturing. The support targets production areas that have seen shifting political representation in recent elections. Tariffs were removed from 100 imported food items, including biscuits and baked goods.

Officials did not introduce price caps on staple groceries or energy bills. The announcement comes amid ongoing uncertainty over energy prices tied to developments in the Middle East. Officials described the steps as incremental measures while broader economic conditions remain under review.