Healey plans import tax cuts on marmalade and gherkins
John Healey, the Chancellor of the Exchequer, will remove import taxes on marmalade, gherkins and more than 100 other products in his Budget, according to the BBC. The Budget is due on Wednesday 28 October. The tariff changes form part of a package of measures that HM Treasury has titled "Everyday fixes to make life easier for millions of Britons".
A tariff is a tax charged on goods brought into the country from abroad. The marmalade tariff suspension covers a 20% tariff plus an additional £19 charge for every 100kg imported. The government said the tariff changes could save households up to £21 a year when combined with existing tariff suspensions on pasta, fruit juice and tuna.
Mr Healey presented the move as a way of giving families "breathing space" with their costs, according to the BBC.
The government also plans to make permanent a tax-free mileage rate of 55p per mile for up to 10,000 miles driven for work. For mileage above 10,000 miles, the tax-free rate would rise from 25p to 35p per mile.
On carers, the government plans to replace the current earnings cliff-edge, the point above which a carer loses their entire carer's allowance, with a taper. A taper reduces a payment gradually rather than all at once, so carers could earn above the limit without losing the whole allowance.
Self-employed fathers would receive two weeks of paternity pay worth up to £194 per week. The government also plans to roll out hundreds of additional Post Office drop boxes to make sending parcels easier.
On motoring costs, the government will freeze fuel duty, the tax on road fuel, again in the Budget and continue the 5p duty discount.
Separately, Reuters reported that Mr Healey is set to announce a cautious first Budget that prioritises stability in the bond market, the market in which the government borrows money by selling bonds to investors. Reuters also reported earlier this month that he is expected to pay for new Budget measures, including a cost-of-living package, without more borrowing.
Further detail on the package is available from HM Treasury.
