Government to cut food import tariffs as grocery price cap proposal abandoned

The initiative is part of a range of measures the government will take in response to the disruption caused by the conflict in the Middle East. However, a proposal that retailers should freeze prices of essential food products will not go forward after widespread condemnation from grocers.

Tariffs will be cut on products such as biscuits, chocolate, dried fruit, and nuts, it is widely expected. Shoppers are expected to benefit to the tune of about £150m.

The shift is expected to be accompanied by other changes designed to help hard-pressed consumers as part of a ‘Great British Summer Savings’ programme.

They include free bus travel for children during the August school holidays and follow an extension of the fuel duty freeze until the end of the year.

The government appears to have retreated on the idea of pushing grocers to voluntarily freeze the prices of some products. The suggestion prompted widespread pushback, including from Marks & Spencer chief executive Stuart Machin, who described it as “preposterous” yesterday. He urged the government instead to address the regulatory and tax challenges faced by retailers.

Conflict in the Middle East, where the Strait of Hormuz – vital to oil supply – remains closed, has begun to affect the cost of living and cost of doing business and is expected to push up inflation later this year.