Budget measures to include fuel duty freeze and food tariff cuts

Making higher tax-free mileage rates permanent and the removal of import taxes on some food items are among the measures being announced ahead of Wednesday's Budget.

The BBC understands the government will also freeze fuel duty again in the Budget, while the Times reports, external it may also slow the pace of pay increases for younger workers on the minimum wage.

The series of small announcements are part of Chancellor John Healey's pledge to give families what he is calling "breathing space" with the cost of living.

The government is also planning to end the so-called cliff-edge for those receiving carer's allowance payments.

Removing tariffs from 100 food items could save households up to £21 per year when combined with existing tariff suspensions that were introduced in June and applied to products including pasta, fruit juice and tuna, according to the government.

Healey said that the ongoing wars in Iran and Ukraine had "hit families here at home through higher everyday costs".

"We can't control global events, but we can act where we can make a difference," he added.

Other measures the government announced include:

The government will also freeze fuel duty again in the Budget, the BBC understands. The 5p duty discount is also set to continue. That discount was first introduced in 2022, and was due to last 12 months, but has been extended ever since.

The Times has reported that the government may slow the pace of pay increases for people aged between 18 to 20 years-old who receive the National Minimum Wage.

It reports that pay for that age group is likely to rise by 3.9% from £10.85 an hour to around £11.27, when the chancellor makes the announcement during the Budget.

It is far below the 26% increase in the National Minimum Wage the Labour government has announced since returning to power in 2024.

Labour had promised in its manifesto it would remove "discriminatory age bands so all adults are entitled to the same minimum wage".

But even after the reported rise, the rate remains below the National Living Wage which applies to over 21-year-olds and is currently £12.71 an hour. This rate is set to rise by 3.9% to £13.20, the Times said.