Tesco has slashed prices across further everyday items and its online grocery services as it seeks to fight back against the competition.

From today, Tesco will cut prices on more than 30 products including bacon, baked beans, broccoli, peppers, sugar, lettuce, cucumber portions and lines from Tesco’s bread ranges.

Tesco will also introduce free click and collect grocery across all locations, and one hour Tesco.com delivery slots will now be available for £1. Its Delivery Saver prices have also been lowered.

Tesco said the new prices will stay down.

The grocer said the price cuts mean Tesco.com customers could save up to £130 a year, and Click & Collect customers could save up to £111 a year. Tesco said if a dotcom customer shopped every Thursday evening for a year, its one-hour slots are now discounted by more than £2.50 so the saving would be £130.

Tesco chief executive Philip Clarke said last week that he would cut prices further if necessary to fight back against the competition, including the rise of the discounters Aldi and Lidl. However, he stressed price was only one component, and he needed to differentiate as well.

New prices include a box of six eggs slashed from £1.38 to £1, English slightly salted butter from £1.49 to £1, Baked Beans in tomato sauce from 45p to 32p and wholemeal bread from 90p to 75p.

David Wood, UK Marketing Director at Tesco, said: “I’m absolutely delighted we can do this for our customers.  We never stop thinking about how to make their lives better and easier, and these new lower prices on every day products will really help families on a budget.  Together with £1 home delivery or free Click and Collect for food shopping, our customers are going to make real savings.”