LONDON (AP) — The British government is offering cheaper chocolate and discounted entry to theme parks as it seeks to ease a cost-of-living squeeze and win back voters.
Treasury chief Rachel Reeves on Thursday announced modest handouts to help alleviate rising costs sparked by the Iran war, including a reduction in import tax on cookies, chocolate and about 100 other supermarket products.
U.K. inflation fell to 2.8% in April, down from 3.3% in March, but is expected to spike again on the back of higher prices for fuel, heating gas and electricity.
To ease the impact, the government has postponed a planned increase in fuel duty and given truckers a yearlong reprieve from road tax to help offset soaring gasoline prices due to the effective closure of the Strait of Hormuz, a key oil transit route.
But Reeves did not commit to broader support for household heating bills.
She announced measures designed to boost the summertime economy, including free bus travel for children in August. During the summer, tax on tickets for attractions including zoos, theme parks and museums will be slashed from 20% to 5%.
Reeves said she would pay for the cost-of-living support by closing tax loopholes for oil and gas companies with overseas operations.
“This summer I want every family to be able to enjoy themselves,” Reeves said. “As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”
The announcements came as Prime Minister Keir Starmer tries to keep calm and carry on while rivals in the governing Labour Party seek to oust him after a set of disastrous local election results.
The last two weeks have been devastating for Starmer, who led the party to a landslide victory less than two years ago. Scores of Labour lawmakers have called for him to resign, and he is widely expected to face a leadership challenge. Greater Manchester mayor Andy Burnham is aiming to win a seat in Parliament in a June 18 special election, and then challenge Starmer for the prime minister’s job.
Starmer insists he will not resign and will fight for his job. Under U.K. political rules, whoever took over from Starmer as party leader would also become prime minister, without the need for a national election.