Rachel Reeves is set to cut food costs and offer free children’s bus fares in a fresh batch of measures aiming to ease the cost of living crisis and impact of the Iran war on the UK.
Staples such as biscuits, chocolate and baked beans could become cheaper as the government slashes import tariffs on more than 100 types of product, in a move which could save consumers a combined £150 million per year.
The chancellor will also announce on Thursday a “Great British Summer Savings” scheme, including free bus travel for children in England during the school holidays in August.
The free bus travel scheme will allow every child aged five to 15 in England to travel on participating local routes.
“My number one priority is protecting households from rising costs,” the chancellor said, although the government is not expected to announce immediate help with rising energy bills.
There had been speculation over whether the government could cap supermarket food prices, but these suggestions were met by heavy opposition from the industry and from Bank of England governor Andrew Bailey, who said it would be “unsustainable”.
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Key Points
- Chancellor cuts food tariffs and bus fares for children to address cost of living
- Reeves warned against supermarket price caps by Bank of England governor
- Streeting likely to ditch leadership bid if Burnham wins Makerfield by-election - report
- Burnham ‘backs Mahmood over migration crackdown’ ahead of by-election race with Reform UK
- Streeting warns Labour 'losing fight against nationalism'
Ukrainian MP: Lifting sanctions puts ‘question mark’ over UK friendship
06:00 , Jane Dalton.jpeg?trim=0,435,0,435&width=1200&height=800&crop=1200:800)
Ukrainian MP: Easing Russian sanctions puts ‘question mark’ over friendship with UK
UK announces £3.7bn-a-year trade deal with Gulf states
05:00 , Jane Dalton
UK announces trade deal with Gulf states worth £3.7bn a year
We may have cut interest rates twice this year if not for Iran war – Bank chief
04:00 , Jane DaltonUK interest rates may have been cut twice this year were it not for the Iran war, the Bank of England’s chief has said, as he warned that potential supermarket price controls were “not sustainable” in the long run.
Bank governor Andrew Bailey told MPs on the Treasury Committee that inflation also may have fallen to its 2% target level last month but the energy shock was keeping the cost of living higher.
The conflict has been the “dominating change in the landscape” for the economy, he said.
Mr Bailey added: “It was a reasonable expectation prior to this all happening that we would probably cut once or twice this year, the market was pricing that.
“The market isn’t pricing that now and effectively that was taken off the table.”
Watch: Could a supermarket food price cap help with the cost of living? We asked shoppers
02:50 , Jane DaltonComment: Why the UK doesn’t need Soviet-style price caps
01:00 , Jane DaltonYou can’t sustain lower prices without going bust, writes James Moore:
Why the UK really doesn’t need Rachel Reeves’s Soviet-style price caps
Britons oppose loosening sanctions on Russian oil
00:15 , Jane DaltonNew YouGov polling finds that 49% of Britons oppose loosening sanctions on Russian oil, compared to 19% who support it.
However, when asked which is the greater priority, more Britons say keeping fuel prices down (42%) than maintaining the strength of sanctions (32%).
Comment: One bad policy after another
23:40 , Jane DaltonDevising two terrible new policies in one day suggests Keir Starmer’s government has finally lost the plot, says John Rentoul:
Was this the moment Labour began to panic?
Reeves cuts food tariffs and bus fares for children to address cost of living
22:51 , Alex CroftShoppers could save on the cost of biscuits and chocolate as part of a package of measures being set out by Rachel Reeves to ease the impact of the Iran war.
The Government is cutting import tariffs on more than 100 types of product in a move that is expected to save consumers more than £150 million a year.
The Chancellor also set out a “Great British Summer Savings” scheme, including free bus travel for children in England during the school holidays in August.
The free bus travel scheme will allow every child aged five to 15 in England to travel on participating local routes.
The Chancellor is committing more than £100 million to fund the free fares scheme and to support bus services facing increased costs.
Ms Reeves said: “My number one priority is protecting households from rising costs.
“This summer I want every family to be able to enjoy themselves, that’s why we’re launching the Great British Summer Savings Scheme, and why we’re helping kids with free bus travel throughout August.”
But the government is not expected to announce immediate help with rising energy bills.
Burnham ‘backs Mahmood over migration crackdown’ ahead of by-election race with Reform UK
22:47 , Alex CroftAndy Burnham is backing Shabana Mahmood’s stringent efforts to crack down on immigration, his allies say – in an effort to win votes from Reform UK supporters.
The mayor of Greater Manchester reportedly wants to “reframe” the home secretary’s changes but backs her attempts to limit legal and illegal migration, according to sources in his team.
Next month’s by-election in Makerfield is expected to be a close contest between Mr Burnham and Reform UK, which made recent council gains in local elections.
Reform has previously dubbed him “open-borders Andy” but those close to his campaign have told The Guardian he will not want to dilute the government’s curbs on migration.
Home Office reforms to migration rules under Ms Mahmood include ending the right to permanent refugee status and new settlement rules for people who have come to the UK since 2021.
Streeting likely to ditch leadership bid if Burnham wins Makerfield by-election - report
22:45 , Alex CroftWes Streeting is likely to give up his ambition to become Labour leader if Andy Burnham wins the Makerfield by-election, according to a report in The Times.
The former health secretary’s senior allies have said there is a growing feeling that “no one can beat Andy” if the mayor of Manchester, who is widely believed to be planning a leadership challenge against Sir Keir Starmer, finds his way back to parliament.
But another source close to Mr Streeting said this suggestions were “rubbish” and that he would stand in any leadership race.
Earlier, he warned Sir Keir during his resignation speech in the Commons that his government is losing the fight against nationalism, and that it risks “handing the keys of No 10” to Nigel Farage and Reform UK unless it changes course.
Mr Streeting said he had “no regrets” and “rebellious hope” after quitting the government last week and calling on Sir Keir to stand down.
Cheaper food and free bus rides for children in Reeves’ cost-of-living plan
22:44 , Jane DaltonShoppers could save on the cost of biscuits and chocolate as part of a package of measures being set out by Rachel Reeves to ease the impact of the Iran war.
The Government is cutting import tariffs on more than 100 types of product in a move expected to save consumers more than £150m a year.
The Chancellor also set out a “Great British Summer Savings” scheme, including free bus travel for children in England during the school holidays in August.
In the Commons on Thursday, Ms Reeves will give details of policies to tackle the cost-of-living squeeze triggered by Donald Trump’s war in the Middle East - but is not expected to announce immediate help with rising energy bills.
Ms Reeves may set out more details of her contingency planning but she is expected to wait until September before finalising any package of targeted support for households over the winter months, when more energy is used.
The full list of products with lower tariffs will be published next week but is expected to include biscuits, chocolate, dried fruit and nuts.
Streeting warns Labour must change course or risk Reform victory
21:40 , Jane Dalton
Streeting warns Labour must ‘change course’ or risk handing election win to Reform
Watch: Starmer under fire as UK quietly eases sanctions on Russian oil
20:45 , Jane DaltonActivists urge ministers to ban hen cages
20:15 , Jane DaltonActivists placed giant symbolic keys beside statues of former prime ministers in Parliament Square, urging ministers to “unlock” cages for millions of hens across the UK.
A person in a chicken costume held up a key image beside Winston Churchill, David Lloyd-George and Benjamin Disraeli.
The activists say the government should introduce a nationwide ban on cages for the UK’s 6 million laying hens.
They were supported by former shadow chancellor John McDonnell, Adrian Ramsay, former co-leader of the Green Party, and Gorton and Denton by-election winner Hannah Spencer.
Analysis: Why Reform couldn’t care less about candidates' controversial views
20:00 , Jane Dalton
Why Reform UK couldn’t care less about the controversial views of its candidates
Reeves hits back at Reform-backing heckler
19:20 , Jane DaltonChancellor Rachel Reeves hit back at a heckler who shouted at her while she tried to answer questions from the media, telling him: “I love our country, and one of the things about our country is good manners.”
She was interrupted by the man during the broadcast interview at a petrol station in Leeds, who told her the government was “ruining the country” and said “get Keir Starmer out”.
The heckler appeared to be a Reform UK supporter as he shouted: “Nigel Farage. Go on Nigel.”
As he drove his truck, which had two St George’s flags on the roof, out of the station, he said out of the window: “I’ve got British flags on. Am I going to get arrested? We’ve got English flags on here, Rachel, am I going to get arrested? Look at Rachel Reeves there, with a smile on her face.”
Ms Reeves then told him: “I love our country. I love our country, and one of the things about our country is good manners. Not very British.”
Fit note system faces 'radical reform'
19:00 , Jane DaltonThe government says pilot schemes to overhaul the fit note system are the first step of “radical reform”, with patients, healthcare staff and employers providing input ahead of legislation being brought forward for changes to the “broken system”.
Work and Pensions Secretary Pat McFadden said: “Fit notes are too often a dead end – a piece of paper that tells people they can’t work but does nothing to help them get better.
“We’re changing that. By bringing employers, the NHS, and patients together we can help people recover faster, stay connected to their jobs, and get the economy firing on all cylinders.
“That’s what these pilots are about, and that’s what this Government is committed to – fixing what is broken.”
Care minister Stephen Kinnock said NHS staff had repeatedly highlighted that the current fit note system is not working for patients or clinicians who sign them off.
He said: “These pilots mark the beginning of the end for that broken system, giving people personalised support to get back into work and freeing up GPs from unnecessary admin so they can focus on what they do best: caring for their patients.
Reeves warned against supermarket price caps by Bank of England governor
18:57 , Alex CroftThe governor of the Bank of England has warned Rachel Reeves against capping supermarket food prices, warning that the move would risk backfiring.
Speaking to MPs on the Treasury select committee, he said it would be “unsustainable” to freeze the price of essentials, although he accepted there could be reasons in the immediate term to control prices.
“I think the question you have to think through with this sort of thing is: are you doing it for some well-grounded, very temporary reason?” he added according to The Telegraph.
“I think if you start doing it as a matter of course, then you’re effectively artificially moving prices relative to costs, and that’s not a sustainable thing in the long run.”
His comments came after reports that the Treasury is urging supermarkets to limit food price rises, as officials fear the Iran war will push up bills for households already struggling with the cost of living crisis.
The policy, which would be voluntary, would apply to common items such as bread, eggs and milk, according to the Financial Times.
Watch: Labour are sunk if holiday plans canned over price of jet fuel
18:41 , Jane Dalton‘Broken’ sick note system to be overhauled
18:20 , Jane DaltonThe current “fit note” system that results in a huge majority of patients being signed off work is set to be overhauled in a bid to boost economic productivity.
The government will launch pilot schemes to examine ways to end the “tick-box exercise” and provide personalised support for people to stay in employment or return to work if they fall ill.
About 11 million fit notes are issued every year in England.
The four trials will cover up to 100,000 appointments and last up to a year, the government said, with “continuous testing” to establish the most effective way to tackle the rise in the number of fit notes issued.
Under the plans, patients will be either referred to community health workers after being granted an initial fit note or not granted a note and supported by a separate service.
Work and Pensions Secretary Pat McFadden said the current system was broken.
Watch: Analysis of Starmer's thinking and PMQs performance
17:44 , Jane DaltonFuel duty cut to cost £455m
17:10 , Jane DaltonDowning Street has indicated that the government’s decision to extend the 5p fuel duty reduction will cost an estimated £455m.
Sir Keir Starmer confirmed the government would abandon plans to extend the rise amid soaring costs sparked by the ongoing war in the Middle East.
The prime minister’s official spokesman said: “Given the current impact of the conflict, it is right to extend the 5p cut to the end of this year.”
Starmer takes aim at Burnham hailing Pep Guardiola as Manchester ‘hero’ before congratulating Arsenal on title win
16:45 , Nicole Wootton-CaneSir Keir Starmer paid tribute to “one of Manchester’s great heroes moving on after almost a decade”, before naming Pep Guardiola who is reportedly stepping down from his role as Manchester City FC manager.
At Prime Minister’s Questions on Wednesday (20 May), Sir Keir told the Commons: “It would be remiss of me not to comment on one of Manchester’s great heroes moving on after almost a decade, so let me congratulate Pep Guardiola on all his success at Manchester City.”
The Prime Minister also said: “And if I could declare an interest, I’d also like to say congratulations to Arsenal Football Club on becoming the Premier League champions.”
It comes after Mayor of Greater Manchester Andy Burnham has been named Labour’s candidate in the Makerfield parliamentary by-election in Greater Manchester.
You can see more below:
Starmer congratulates Arsenal on title win - and takes Manchester swipe at Burnham
Date of Burnham by-election next month confirmed
16:18 , Jane DaltonThe Makerfield by-election will take place on Thursday June 18, Wigan council has confirmed.
Andy Burnham will be Labour’s candidate.
Starmer under fire after UK quietly eases sanctions on Russian oil - full report
16:10 , Jane Dalton
Starmer under fire after UK quietly eases strict sanctions on Russian oil
UK fuel licences devastating, says Ukrainian MP
15:45 , Jane DaltonUkrainian member of Parliament Lesia Vasylenko said the UK’s trade licences that allow for the import of Russian jet fuel and diesel refined in third countries was devastating, warning it could spark a “domino effect”.
She told BBC Radio 4’s The World At One it was “terrible news for Ukraine” and that Kyiv was “paying the price in human lives” as sales filled Russia’s war chest.
She said the US has been at the forefront of giving waivers to Russian oil and gas and it was “no surprise” the UK had followed.
“You can imagine other economies, other countries looking on at the US and the UK, seeing that they are loosening the sanctions … in order to regulate the rising prices on fuel, they are thinking, why can’t we do the same?”
She added: “It’s only logical that … it will have a domino effect, and that other countries might be following suit, but again, for Ukraine, this is devastating news.”
We still can deliver change, claims Streeting
15:14 , Jane DaltonDelivering his resignation speech in the Commons on Wednesday, Wes Streeting told MPs: “For the first time in our history, nationalists are in power in every corner of the United Kingdom.
“Scottish and Welsh nationalism represents an existential threat to the future integrity of the United Kingdom.
“And Reform UK represent a threat to the values and ideals that have made this country great.”
He also told MPs he does not believe Labour has “time to waste in government treading water”, but added: “The Labour Party was elected to deliver real change. We still can.”
Government not imposing supermarket price caps, No 10 says
15:00 , Athena StavrouDowning Street has insisted the government is not mandating supermarket price caps.
The Treasury has reportedly asked supermarkets to limit food prices, which could see the prices of essential groceries such as eggs, bread and milk capped.
But No 10 said today the government was “not considering” the measures.
The prime minister’s official spokesperson added: “But we are continuing to have constructive conversations with supermarkets on how we can work together to reduce cost pressures.”
UK 'failing to protect young people from AI jobs apocalypse'
15:00 , Jane DaltonThe UK has failed to protect young people from the “AI jobs apocalypse”, Wes Streeting told the Commons.
The Labour former minister said: “For generations, people believed there was a ladder of advancement, an entry-level job, skills acquired over time, promotion, security, progress.
“Now, many young people fear that artificial intelligence may remove the lower rungs of that ladder altogether...
“These are not irrational fears. They are rooted in real economic change and unless mainstream democratic politics can answer these questions, others will exploit that vacuum. They already are.”
Mr Streeting could be seen seated with Labour former minister Jess Phillips and Labour MP for Kettering Rosie Wrighting in the Commons.
Streeting has ‘no regrets’ and ‘rebellious hope’ after quitting job
14:57 , Kate DevlinWes Streeting has called in his resignation speech for politicians to tackle the “crisis” affecting the next generation.
He cited AI, climate change and tech among the challenges they should grip.
“Each generation used to provide a better future for the next - we still can,” he said.
“The question is not whether young people would fight for their country, but when their country is going to fight for them.”
And he said he had “no regrets” but “rebellious hope” after resigning from Sir Keir Starmer’s government last week.
Streeting calls for 'patriotism built on shared values'
14:46 , Jane DaltonPatriotism is “not about who you exclude, it is about who you stand beside”, former health secretary Wes Streeting said as he spoke in the Commons for the first time since leaving Government.
Mr Streeting told MPs: “For too long and too often, patriotism in Britain has been left to the loudest voices and the narrowest arguments, as though love of country belongs to one tribe, one party or one point of view.
“But the Britain I believe in is bigger than that, because patriotism is not about who you exclude, it is about who you stand beside.
“It is not rooted in fear of change or suspicion of difference. It is rooted in solidarity, in the belief that we rise or fall together.
“That is the best of our country’s story – a Britain where people from different backgrounds, different faiths, different nations and regions still see themselves in one another, a country where the son of Indian pharmacists can become our first Hindu prime minister without having his Englishness questioned.
“A patriotism built not on blood and soil, but on shared values, shared institutions and shared responsibilities.”
Streeting defends his call to rejoin the EU
14:43 , Kate DevlinIn a speech in the Commons, the now former health secretary said: “When I gave my maiden speech 11 years ago, I argued that none of the problems facing our country would be solved by leaving the European Union.Today, in the dangerous and volatile world we find ourselves in, dominated by an unpredictable superpower in the USA, a rising superpower in China, and a failed superpower in Russia it is even more clear.”
Mr Streeting has faced criticism for his call at the weekend to rejoin the EU, just as Andy Burnham fights a by-election in Makerfield, which backed Brexit in 2016.
Streeting calls for more and faster investment in defence
14:41 , Jane DaltonWes Streeting, who quit last week as health secretary, has called for the government to “invest more heavily in our defence and more rapidly”.
“I know my right hon friend, the Defence Secretary, and his team do not need persuading on this, nor do they need lectures from the Conservative Party who ran down our capability, and now have the audacity to heckle from the sidelines like the arsonist complaining that the fire brigade hasn't turned up fast enough,” he said.
Streeting warns Labour 'losing fight against nationalism'
14:35 , Jane DaltonWes Streeting has said in his resignation speech in the Commons that the Labour government is losing the fight against nationalism and that “unless we change course, we risk handing the keys of No 10 to Reform”.
Who has been named as a candidate in the Makerfield by-election?
14:30 , Nicole Wootton-CaneWith the Makerfield by-election due to take place in June, several parties have now announced their candidates in what is expected to be a two-horse race between Labour and Reform UK.
So far, these following names will appear on the ballot:
- Andy Burnham, Labour
- Robert Kenyon, Reform
- Rebecca Shepherd, Restore
- Alan ‘Howlin’ Laud Hope for the Monster Raving Loony Party
The Tories, the Greens and the Lib Dems are yet to name their candidates, but have confirmed that they will be standing in the Manchester seat.
Watch: Starmer says UK has bagged a trade deal with North Korea in PMQs blunder
14:15 , Nicole Wootton-CaneOpinion: The Kremlin will now have more money to kill Britain’s allies in Ukraine
13:58 , Jane DaltonMen and women I have known since before the Russian invasion of Ukraine, who held back Putin’s invading convoys, now stand a slightly greater chance of being killed because of the British prime minister, writes world affairs editor Sam Kiley:
The Kremlin will now have more money to kill Britain’s allies in Ukraine
An Andy Burnham-led Labour Party could beat Reform UK in a general election, new poll suggests
13:45 , Nicole Wootton-CaneThe Independent’s Whitehall editor Kate Devlin reports:
A day after polls showed that in a straight head-to-head Burnham is more popular than Farage, another survey has offered a boost to the Greater Manchester mayor.
The survey, carried out for More in Common (MIC) and seen by the Press Association, found a Burnham-led Labour would get an eight-point boost and move ahead of Reform UK, beating the party by 30 to 27% if an election was held tomorrow.
MIC revealed on Tuesday that Mr Burnham beats Mr Farage by around 14 percentage points in head-to-head polls, performing around 10 points better than Sir Keir Starmer.
Both findings are likely to be seized on by Mr Burnham’s supporters, who argue he has to replace Sir Keir to save the UK from Mr Farage becoming prime minister.
No 10 refuses to say whether PM will campaign in Makerfield
13:39 , Jane DaltonDowning Street has declined to say whether Sir Keir Starmer would personally be knocking on doors in the Makerfield by-election for leadership hopeful and candidate Andy Burnham.
Asked repeatedly whether the Prime Minister would campaign in the constituency, his press secretary pointed back to remarks on Monday in which he said he wanted “everyone in our movement to support Andy Burnham as the candidate” and that he backed him “100%”.
Comment: Was this the moment Labour began to panic?
13:30 , Nicole Wootton-CaneLifting sanctions on Russian oil, putting price caps on supermarkets… two truly terrible new policies in one day suggest that Keir Starmer’s government has finally lost the plot, says John Rentoul.
Was this the moment Labour began to panic?
Andy Burnham cancelled conference appearance today to fight by-election
13:15 , Nicole Wootton-CaneThe Independent’s Whitehall editor Kate Devlin reports:
Mr Burnham had been expected to speak in a building conference in Leeds today, but organisers said “his schedule has changed”.
His team say he cancelled once he became the candidate in the Makerfield by-election, for which he was officially adopted on Tuesday.
Campaigning has already begun in the seat, with the vote expected to be held within weeks, on 18 June.
What does Starmer's freeze on fuel duty mean?
13:00 , Nicole Wootton-CaneSir Keir Starmer announced at PMQs this afternoon he will freeze fuel duty for the rest of the year.
The prime minister told MPs the 5p per litre fuel duty cut introduced by the Conservative government in March 2022 would stay until the end of 2026.
That means the rate will remain nearly 53p per litre.
Rates were previously planned to increase by 1p per litre on September 1, with a pair of 2p per litre rises on December 1 this year and March 1 next year.
Iran’s restrictions on tankers passing through the Strait of Hormuz means the average price of a litre of petrol and diesel at UK forecourts is 26p and 44p respectively more expensive than before the conflict started on February 28.
Sir Keir said: “Families across the United Kingdom are facing impacts of a war that we did not choose.”
He said: “This is not our war, but while the parties opposite wanted to jump into it, Labour will always protect working people.”
Suspended Labour MP condemns No 10 over briefings about his mental health
12:50 , Nicole Wootton-CaneThe Independent’s political correspondent Millie Cooke reports:
Suspended Labour MP Karl Turner has condemned Sir Keir Starmer's government over government briefings about his mental health, revealing that he lost his nephew to suicide.
The MP - who has been a vocal critic of the government's plan to scrap jury trials - told the Commons: "From 1997, the prime minister campaigned to scrap single judge trials in Northern Ireland.
"Yet when I opposed his government's plan to bring in single judge trials in England and Wales, I received hostile briefings and smears about my mental health from the lads in No 10 Downing Street. The chief whip is shaking his head - but he knows about it, Mr Speaker."
He added: "The prime minister knows that my nephew Matty took his own life as a result of work related stress as a young criminal lawyer. So during mental health awareness week, while ministers spoke with compassion about health and wellbeing can the prime minister reflect on those hostile, discriminatory briefings which he knew about and he allowed to happen."
Responding, the prime minister failed to deny that the briefing had happen - nor did he deny that he knew about it.
Sir Keir said: "Can I thank him, and he has told me previously about Matty and the impact that had on him. And I totally understand that. And I want to be absolutely clear that nobody should be smeared in relation to mental health. Nobody on any issue whatever they may argue on any other issue. Nobody. and I will do everything I can to make sure that is the position."
If you are experiencing feelings of distress, or are struggling to cope, you can speak to the Samaritans, in confidence, on 116 123 (UK and ROI), email jo@samaritans.org, or visit the Samaritans website to find details of your nearest branch.
Starmer is all smiles in the face of a huge number of challenges
12:38 , Nicole Wootton-CaneThe Independent’s Whitehall editor Kate Devlin reports:
During a difficult PMQs for the prime minister, Sir Keir Starmer managed to find some lighter moments.
As well as congratulating his beloved Arsenal for winning the Premier League, the PM also had to laugh as he realised he had mistakenly made an international blunder.
He told the Commons he had accidentally claimed that his government had done a trade deal with North Korea - the dictatorship ruled by Kim Jong Un - instead of its democratic neighbour South Korea.
“It was a slip of the tongue but a pretty unfortunate one” he joked to MPs.
“That would be breaking news.”