UK budget expected to cut tariffs on some popular grocery items

The United Kingdom's finance minister, Chancellor of the Exchequer John Healey, has revealed measures designed to make living costs more manageable for "millions of working people and families" ahead of the country's first budget under Prime Minister Andy Burnham on Wednesday.

The government announced it will scrap import tariffs on more than 100 grocery items, including marmalade and gherkins, freeze fuel duty, reform carer's allowance payments, and adjust parental pay rights as part of measures aimed at easing costs.

Healey said the action is "just a small part of what we are doing to give families a bit of breathing space".

"Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs," he said. "We can't control global events, but we can act where we can make a difference."

Jonathan Reynolds, the UK's secretary of state for business, innovation, science and trade, said the tariff cuts on food items would bring combined savings for families of up to 21 pounds ($27) annually, when factored with existing suspensions introduced in June.

Reynolds acknowledged the measure "is not everything", but said it would save around 500 million pounds annually, when combined with summer tariff cuts on pasta, fruit juice, and tuna.

Burnham said: "We are taking on the big challenges facing the country. But that doesn't mean losing sight of the everyday problems that cost people money or simply aren't fair.

"If you're a nurse driving for work, a parent spending those precious first weeks with your new baby, or an unpaid carer picking up an extra shift, these changes will make life a little easier and put more money back in your pocket."

The opposition Conservative Party criticized the move, claiming any savings had already been wiped out by broader inflation and borrowing costs.

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."

Healey is also expected to announce new minimum wage rates on Wednesday for both 18-to-20-year-olds and those who are 21 and over.

The Labour Party government has pledged to scrap "discriminatory age bands so all adults are entitled to the same minimum wage", but Reynolds appeared to confirm that pay rises for younger workers would slow, while refusing to reveal the new figures.

Speaking to the BBC, Reynolds said: "The manifesto pledge on equalization still applies but we were always clear it could happen over time. Of course, you want not just good wages but good work. It is a balance of making sure the pressures on the labor market are taken into account."

jonathan@mail.chinadailyuk.com