UK Chancellor announces tariff cuts and tax changes before Budget

The chancellor has announced a package of measures ahead of the Budget aimed at providing households with financial relief. BBC Business and the BBC reported that tariffs on certain staple imported foods will be suspended. These changes include removing a 20 percent tariff and an extra charge of 19 pounds per 100 kilograms on imported marmalade. [1][2]

According to BBC Business, the plan updates tax rules for workers and parents. The tax-free mileage rate for individuals driving up to 10,000 miles for work will be set permanently at 55 pence per mile. For driving distances beyond 10,000 miles, the tax-free rate will increase from 25 pence per mile to 35 pence per mile. Self-employed fathers will also receive two weeks of paternity pay. [1]

BBC Business also reported that the package modifies earnings limits for carers. Instead of losing their entire allowance after passing a specific income threshold, carers will transition to a taper mechanism. John Healey stated that ongoing conflict in Iran and Ukraine had raised daily living costs for domestic families, adding that the government is taking action where it can make a difference. [1]

John Healey has served as Chancellor of the Exchequer since 2026 and represents the Labour Party as the Member of Parliament for Rawmarsh and Conisbrough. He previously held the role of Secretary of State for Defence between 2024 and 2026. [7]