UK government consultation on tariff suspensions for over 100 everyday essentials and mileage rate increases for business use of private vehicles closes on 24 June 2026.
The UK government has launched a consultation on suspending tariffs on more than 100 everyday essentials and has confirmed an increase in mileage rates for workers using their own vehicles for business use.
The package, published by HM Treasury on 27 May 2026 and announced alongside The Rt Hon Rachel Reeves MP and The Rt Hon Heidi Alexander MP, targets a list of 125 items including fruit, oils and core pantry goods such as garlic, avocados, mangoes, nectarines, vegetable oil, olive oil and baked beans. It also includes chocolate, sauces and soft drinks.
The consultation seeks views from businesses and stakeholders on a second package of tariff suspensions aimed at reducing costs for households and firms. It also includes consideration of suspending tariffs on selected fertilisers to help farmers manage higher input costs linked to global supply pressures.
In parallel, the government has confirmed the first uprating of mileage rates in 15 years. Tax-free rates for employees using their own vehicles for work will rise by 10p per mile, increasing from 45p to 55p for the first 10,000 miles. The change applies from April 2026 and is expected to benefit around two million employees and one million self-employed workers, with estimated savings of around GBP120 a year for someone driving 6,000 business miles.
The measure follows an extension of the fuel duty freeze to the end of the year, which the government says has delivered additional savings of around GBP 120 for motorists since last year.
Further transport-related support includes a one-year road tax holiday for hauliers from 1 July and a reduction in the rate of red diesel and rebated biodiesel by more than a third, reaching its lowest level in over two decades.
The government said the measures form part of wider cost-of-living support, including the “Great British Summer Savings” package announced last week. This includes free bus travel for 5–15-year-olds in England, temporary VAT reductions on children’s meals in restaurants, and cuts to VAT on admissions to theatres, theme parks and other attractions.
Other ongoing measures include reductions of around GBP 150 on average from household energy bills, frozen prescription charges and rail fares, and increases in the national minimum and living wages.
Transport groups and unions have welcomed the changes. UNISON said the mileage rate increase would provide immediate relief for frontline workers who rely on their own vehicles for work, while noting further action is still needed to address long-term cost pressures.
Responses to the call for input may be submitted via the online survey, with the consultation open until 11:59 pm on 24 June 2026.
