Latest cost-of-living support: Reeves cuts VAT for families and suspends 100 food tariffs in new support package.

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Rachel Reeves has announced that the VAT rate on summer attractions such as zoos and cinemas will be temporarily cut from 20% to 5%.

The Prime Minister is planning to cut food costs and lower household costs with new measures to ease the cost of living crisis and the impact of the Iran war on the UK.

Staples such as biscuits, chocolate and baked beans could become cheaper as the government cuts import duties on more than 100 products, a move that could save consumers a total of £150 million a year.

But health experts have warned the government should provide incentives for healthy foods rather than lower biscuit prices.

The Prime Minister is also due to announce his “Great British Summer Savings” plan on Thursday, which includes free bus travel for children in England during the August school holidays.

“My top priority is to protect households from rising costs,” the Prime Minister said. However, the government is not expected to announce immediate support for rising energy bills.

But Reeves ruled out making “massive, unfunded spending commitments” to provide universal help with energy bills.

There has been speculation about whether the government could limit supermarket food prices, but the proposals have been met with fierce opposition from industry and Bank of England governor Andrew Bailey, who said it would be “unsustainable”.

Prime Minister announces VAT cut for family attractions

Rachel Reeves has announced a temporary reduction in VAT on certain attractions over the summer holidays.

Value added tax (VAT) on activities such as fairs, museums and children’s meals in restaurants and cafes will be reduced from 20% to 5%.

She told the Commons: “We know that what is important to families is not just getting by, but being able to enjoy time together without worrying about the next bill.

“That’s why I’m launching the Great British Summer Savings Scheme to help families and support the hospitality sector.

“That’s why I can today announce a temporary reduction in the VAT rate on summer attractions from 20% to 5% for the summer holiday period.

“This applies to ticket prices for both adults and children, including attractions such as fairs, theme parks, zoos and museums.”

This includes cinema, concert, soft play and theater tickets and applies from 25 June until the end of the holiday period on 1 September.

Holly EvansMay 21, 2026 12:33

Reeves confirms U-turn on fuel tax hikes

Rachel Reeves has confirmed plans to increase fuel taxes have been reversed as a result of the war with Iran.

She told the Commons: “On fuel tariffs, we have already extended the 5p cut twice since the election, and I can confirm today that there will be no increase in fuel tariffs this year, recognizing that fuel prices have risen as a result of the war.”

She also announced a 10p per mile increase in tax-free mileage from April 2026. This will support people such as carers and plumbers who travel regularly.

Rachel Reeves announced the new legislation on Thursday (Parliament TV).

Holly EvansMay 21, 2026 12:29

Prime Minister announces £350 million support for heavy industry

Among the measures to be announced, the Prime Minister has handed a £350 million lifeline to the chemicals sector, including ceramics producers.

The funds are expected to be used to target businesses classified as infrastructure essential to the country’s resilience, amid concerns about the heavy industrial sector.

Holly EvansMay 21, 2026 12:27

Reeves criticizes Iran war, says government has ‘sound economic plan’

Rachel Reeves opened her speech in the House of Commons by saying the Labor government had the “right economic plan” before introducing a series of measures to help with the cost of living crisis.

She told lawmakers: “Since the election interest rates have been cut six times, real wages have risen and yesterday the ONS confirmed that inflation fell faster than expected in April.

“We have the right economic plan, but the Middle East conflict poses serious challenges to the global economy, including ours.

“I have not hesitated to criticize the war. I believe it was a mistake.”

Holly EvansMay 21, 2026 12:22

Rachel Reeves opens her speech in the Commons.

Prime Minister Rachel Reeves has begun announcing measures to address the current cost-of-living crisis, partly due to the impact the Iran war has had on the UK.

Holly EvansMay 21, 2026 12:18

Sadiq Khan blocks Palantir’s deal with Met police.

Sadiq Khan reportedly blocked a £50m deal between the Metropolitan Police and US tech company Palantir.

Scotland Yard has been in talks with a controversial company to automate AI analysis in criminal investigations, with City Hall withholding approval citing “clear and serious breaches” of procurement rules.

Police were found to be seriously involved with only one supply, Palantir, and Khan’s office said the Met risked being locked in on their technology while the deal did not “guarantee or demonstrate value for money”.

The Mayor’s Office of Police and Crime (Mopac) did not block Palantir from bidding on similar future contracts.

There are growing concerns about Palantir’s influence on UK public services, including contracts with the NHS, the Ministry of Defense and the Financial Conduct Authority.

The company was founded by Trump, who supports the billionaire and is also involved in the Israeli military and ICE enforcement efforts in the United States.

Holly EvansMay 21, 2026 12:13

Could supermarket food price caps help with the cost of living? We asked shoppers what they thought.

Holly EvansMay 21, 2026 11:57

Starmer allies said the government had already introduced a wealth tax.

One of Sir Keir Starmer’s key cabinet allies said the government had already introduced a wealth tax when asked about plans announced by potential leadership challenger Wes Streeting.

After speaking about planned local government reforms in London, Communities Secretary Steve Reed said: “I haven’t had a chance to sit down and listen to everyone’s views, but of course the government has already introduced a wealth tax.

“For example, the Bidome transformation was one of them. I think a total of around £8 billion has been raised, not just through one intervention, but through a variety of approaches that are now being used to improve public services on the front line.”

Holly EvansMay 21, 2026 11:47

Diabetes experts say we need to increase the cost of less healthy options.

Naveed Sattar, professor of cardio-metabolic medicine at the University of Glasgow, suggested the government should provide incentives for healthier foods.

The professor, who focuses on diabetes, obesity and cardiovascular disease, told The Independent: “Improving health outcomes may require a dual approach: providing incentives for healthier, fiber-rich foods (such as fruits and vegetables) while increasing the cost of less healthy options.

“These measures could help guide individuals toward better eating patterns, especially as healthier choices become more affordable.”

Rebecca Whitaker21 May 2026 11:20

Andy Burnham says politics is in a ‘dangerous position’.

Andy Burnham has said the country has been “going down the wrong path” for 40 years, which he believes started with the deindustrialization of large parts of Greater Manchester.

The mayor, who is running in the Makerfield by-election and is widely seen as a threat to Sir Keir Starmer’s chancellorship, said privatization, bus deregulation and austerity in the 2010s were all responsible for today’s economic situation.

“I think we’ve reached a point where people in this country can’t live a good life. They can’t afford the basics, they can’t afford a few beers on the weekend, they can’t afford holidays, they can’t afford gifts for their kids,” he said.

“This is a dangerous place and I think we need to learn from what we have done here in Greater Manchester.

“Be proud of it, and what we’ve done here will now help change the whole country.”

Andy Burnham says the country has been going down the ‘wrong path’ for 40 years (Reuters)

Holly EvansMay 21, 2026 11:13

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