Chancellor John Healey announces package of tariffs and workplace tax changes

Chancellor of the Exchequer John Healey has announced a pre-Budget package of everyday measures designed to ease financial pressure on households, BBC News reported. As part of the plan, the government will suspend tariffs on selected basic food items, including a 20 percent tariff and a charge of 19 pounds per 100 kilograms on imported marmalade. Healey stated that conflicts in Iran and Ukraine have increased everyday living costs for domestic families. [1][3][7]

The proposals also include changes to employment tax rules and social benefits, according to BBC News. The tax-free mileage rate for individuals driving for work will remain permanent at 55 pence per mile for up to 10,000 miles. For mileage above that threshold, the rate will rise from 25 pence per mile to 35 pence per mile. Self-employed fathers will receive two weeks of paternity pay, and the fixed earnings cap for carers will be replaced with a gradual taper mechanism. [1][3]

Separate reporting by The Telegraph and GB News indicates that Healey is also set to shield almost one million pensioners from income tax in the upcoming Budget. Healey has served as Chancellor of the Exchequer since 2026 and was previously the Defence Secretary from 2024 to 2026. He has represented the constituency of Rawmarsh and Conisbrough as a Labour Member of Parliament since 1997. [2][4][7]

As FTMQ News reported earlier, the Chancellor's upcoming Wednesday Budget is also expected to feature over 1 billion pounds for social and affordable housing in England, raising total funding for the 10-year homes program above 40 billion pounds. That package is expected to include a 1.5 billion pound regional borrowing facility spread over two years to support mayors and local councils with economic growth. [10][11]