LONDON — British Treasury chief Rachel Reeves unveiled a summer cost-of-living relief package in London that includes cheaper chocolate, discounted theme park tickets, free bus travel for children and reduced taxes on a range of supermarket goods. Reeves announced the measures to help alleviate rising costs linked to the Iran war.
The measures include a reduction in import tax on cookies, chocolate and about 100 other supermarket products. During the summer, tax on tickets for attractions including zoos, theme parks and museums will be cut from 20% to 5%. The government will also offer free bus travel for children in August.
The government has postponed a planned increase in fuel duty and given truckers a yearlong reprieve from road tax. The package is intended to help offset rising gasoline prices following the effective closure of the Strait of Hormuz, a key oil transit route.
Reeves said she would pay for the cost-of-living support by closing tax loopholes for oil and gas companies with overseas operations. She did not commit to broader support for household heating bills.
"This summer I want every family to be able to enjoy themselves," Reeves said in announcing the package. "As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain."
U.K. inflation fell to 2.8% in April, down from 3.3% in March. Inflation is expected to rise again due to higher prices for fuel, heating gas and electricity.
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