Budget 2026 to raise mileage allowance and cut food tariffs

Summarised from 2 outlets · Updated 27 Oct, 17:33 · Archive

The Government has announced five measures ahead of Wednesday's Budget, including changes to mileage allowances and removal of tariffs on over 100 food products.

Prime Minister Andy Burnham and Chancellor John Healey have announced five measures ahead of Wednesday's Budget aimed at helping families and businesses. The package covers work-related travel, food prices, parental pay and support for unpaid carers, alongside plans to make sending and returning parcels easier.

Millions of employees and self-employed people who drive for work are set to benefit from changes to the tax-free mileage allowance. The Government will make the existing 55p-a-mile rate permanent for the first 10,000 business miles, with the rate increasing from 25p to 35p per mile for mileage above that threshold. The overall package is expected to help around three million workers.

Shoppers could save money on their food bills after ministers announced plans to remove tariffs on more than 100 products. Popular items including baked beans, chocolate and gherkins are among the goods covered. The Treasury estimates the tariff cuts will save households around £21 on food shopping over the course of a year. The changes are also intended to reduce costs for farmers by cutting tariffs on fertilisers, while households using kerosene for heating could benefit from a separate tariff reduction.

More than 150,000 parents a year are expected to benefit from an extension to parental pay, with changes including self-employed fathers who have previously missed out on the support. The Government has promised to end the controversial Carers' Allowance earnings cliff edge.

How it is being reported

• Budget 2026 5 changes that could affect your money before ChristmasFive Budget measures have been revealed ahead of Wednesday, including mileage allowance changes, cheaper food, parental pay and support for carers.Cambs Times · 27 Oct, 17:04
• Budget 2026 5 changes that could affect your money before ChristmasFive Budget measures have been revealed ahead of Wednesday, including mileage allowance changes, cheaper food, parental pay and support for carers.Ely Standard · 27 Oct, 17:04

In this story: Andy Burnham · John Healey · Government

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