Free bus trips and chocolate tax cuts to be announced

15 minutes agoMichael Race,Business reporterandHarry Sekulich

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Free bus journeys for children for a month and cuts to import taxes on some basic foods are set to be announced by the government in a bid to ease cost of living pressures.

Children aged five to 15 will travel for free on participating local buses in England in August.

Meanwhile, biscuits, chocolate, dried fruit and nuts are among more than 100 products which will see targeted cuts to import charges in order to stem price rises.

The announcements are part of a “Great British Summer Savings” scheme as the government attempt to wrestle back control of the political agenda and uncertainty surrounding the Prime Minister’s future.

The intervention on the cost of living measures comes as households are experiencing rising fuel prices at the pumps, and are bracing themselves for higher energy and food bills due to the war in Iran disrupting supply chains.

UK business activity also declined for the first time in a year, according to the closely-watched purchasing managers’ index (PMI) survey released on Thursday, driven by weaker confidence among consumers and firms.

By offering free bus trips, the government has estimated its £100m fare-free scheme could save a family with two children who make a weekly return trip at £1.50 per fare approximately £27 in August.

Eligible children would be able to take an unlimited number of trips and will not need registration to travel fare-free.

“As the war in Iran pushes prices up at home, my economic plan is the right one,” Chancellor Rachel Reeves said.

“I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”

While the chancellor will announce the policy to suspend tariffs on certain foods to try to ease price rises, the full list of products included in the measures will be published next week.

Tariffs are import taxes on goods paid by companies from overseas that form part of the supermarket supply chain. It is hoped that suspending such tariffs will reduce pressure on food price rises.

Figures this week revealed food prices had risen 3.3% in April compared to April 2025, but there are predictions food inflation could surge to as high as 10% by the end of year.

As part of the flurry of policy announcements, the government announced on Wednesday it would scrap a planned rise in fuel duty, extending the 5p cut to the end of the year, instead of phasing it out n September.

Separately, ministers have been pressing supermarkets to cut costs for shoppers but will not force them to cap prices on essentials like eggs, bread and milk.

Multiple supermarket sources told the BBC that the government had urged them to voluntarily freeze the price of key groceries, in return for an easing of regulations.

But even a voluntary scheme to cut costs was described by Marks & Spencer’s chief executive, Stuart Machin, as “completely preposterous”.

‘Making life that bit easier’

Prime Minister Sir Keir Starmer said: “By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we’re putting money back into people’s pockets and making life that bit easier.”

Conservative Shadow chancellor Mel Stride acknowledged the “value” of the scheme, telling BBC Breakfast that anything that is going to get prices down is a “good thing”.

However, he said capping costs of food items could lead to shortages on supermarket shelves and create “a lot of pressure” through the supply chain. The government has denied it is seeking to cap food prices.

Dr Ellie Chowns, leader of the parliamentary Green Party, said the measures expected to be laid out were “yet more evidence that this government does not grasp the scale of the unaffordability crisis for ordinary families across Britain”.

“If the Chancellor truly wants to make life more affordable for British households, she needs to think far beyond a ‘summer savings scheme’ which does nothing to address soaring energy bills, sky-high housing costs, and crumbling public services,” she added.

Olly Glover, Liberal Democrat Transport Spokesperson, added: “Free bus travel for children this summer is a welcome step, but the government must go further to ease the burden on everyone”. He called for an “emergency transport package” to cut the current bus fare cap from £3 to £1, to reduce rail fares by 10%, and knock 10p off fuel duty.

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