Millions Save Big with Lower Travel Costs Today

Lower travel costs are on the horizon for many working individuals as the Government announces targeted cuts to tariffs on over 100 everyday essentials while adjusting mileage rates for the first time in 15 years. The ongoing consultation seeks insights from businesses and stakeholders on the implications of an additional support package. This initiative encompasses a diverse array of daily necessities, including fresh fruits and vegetables, oils, baked goods, chocolates, sauces, and soft drinks. Among the 125 included items are garlic, avocados, mangoes, nectarines, vegetable oil, olive oil, and baked beans. This initiative builds on the previously announced tariff suspension made in April. Simultaneously, the Government is also exploring whether removing tariffs on specific fertilizers could assist farmers in managing the rising fertilizer costs stemming from the conflict in the Middle East. Chancellor of the Exchequer, Rachel Reeves, stated, "The war in Iran isn’t our war, but we must respond accordingly, prioritizing the reduction of costs for households and businesses. That’s why we’re freezing fuel duty, raising the mileage rate for the first time in 15 years, and temporarily slashing VAT this summer to alleviate expenses for family outings." This announcement promises cheaper journeys for countless workers across the nation, including carers, plumbers, builders, and other professionals using their vehicles for work, following the Chancellor's adjustment of mileage rates. In the most significant adjustment ever, the tax-free mileage rate has increased by 10p per mile for this tax year, backdated to April 2026. This move is designed to help ease living costs for hardworking Britons. The rate now rises from 45p for the initial 10,000 miles to 55p per mile, potentially saving a worker who travels 6,000 business miles approximately £120. Up to two million employees and one million self-employed individuals stand to benefit from this change. Additionally, motorists can look forward to savings from the continued freeze on fuel duty until year-end. This marks the third occasion Rachel Reeves has implemented a fuel duty freeze to assist drivers, saving them £120 since last year. Acknowledging that farmers and hauliers are particularly vulnerable to soaring fuel prices—and recognizing their crucial role in UK supply chains—further relief has also been introduced. The tax rate on red diesel and rebated biodiesel used by farmers has been cut by more than a third, marking the lowest rate in over 20 years. Moreover, a road tax holiday for hauliers has been instituted for a year starting July 1. Transport Secretary Heidi Alexander emphasized, "We are a government firmly on the side of drivers, acting decisively when hardworking individuals face rising expenses. The people who utilize their vehicles for work are the backbone of our society—the carers, tradespeople, and public sector workers keeping services operational. For too long, they've been expected to bear increasing costs with insufficient support. We’re committed to easing everyday financial pressures for workers, translating into real savings amidst the ongoing cost-of-living challenges tied to the Middle East conflict, while supporting businesses relying on summer foot traffic." Andrea Egan, General Secretary of Unison, remarked, "This straightforward measure will provide much-needed assistance to countless frontline workers in public services, particularly as living costs continue to escalate. Those requiring their own vehicles for work have faced thousands of pounds in losses for too long. UNISON has vigorously advocated for this necessary adjustment, and it's promising to see the Chancellor addressing the concerns of staff disproportionately affected by stagnant rates. More efforts are needed to ensure everyone is accounted for, and the union will persist in its campaign as we move forward." This announcement complements a broader support package introduced by the Chancellor last week, branded ‘Great British Summer Savings.’ This program offers free bus travel for children aged 5 to 15 in England, reduced VAT on children's meals at restaurants, and a VAT cut for all admissions to theatres, amusement parks, and other attractions. These initiatives aim to help families enjoy weekend outings and staycations during the cost-of-living squeeze, while concurrently supporting businesses that thrive on summer visitors. Additional actions from the Budget include cutting household energy bills by an average of £150, freezing prescription charges and rail fares, and boosting the national minimum and living wages by hundreds of pounds. These measures continue to support families each month. For more information, visit the official Government announcement [here](https://www.gov.uk/government/news/millions-to-benefit-from-lower-travel-and-food-costs). You can also learn more about travel and food cost savings on [Globe Migrant](https://www.globemigrant.com/travel-expenses) and [Globe Migrant](https://www.globemigrant.com/food-savings).

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