UK chancellor Rachel Reeves has announced the suspension of tariffs on over 100 foods and urged supermarkets to pass the cost savings on to consumers.

“Today I am taking action by suspending tariffs on over 100 different foods sold in supermarkets. And I am clear that I expect supermarkets to pass these savings on in full to consumers,” she said in a speech to parliament on Thursday.

HM Treasury said the tariff suspensions include biscuits, chocolate, dried fruit, nuts, crisps, some ketchup and other sauces, and margarine. It expects the legislation to pass through parliament in July.

The department confirmed that supermarkets will be encouraged to pass the savings on to consumers, but there will not be a direct mechanism to enforce this.

This is the latest in a series of cost-of-living announcements made by the country’s top financial minister following the ruling party’s widespread defeat in local elections in early May. Earlier in the week, the Financial Times reported that the Treasury had discussed the idea of voluntary caps on basic supermarket goods with retailers.

This plan was described as “the stuff of nonsense” by former Marks & Spencer chairman Lord Rose, according to the BBC.

On 20 May, the government announced plans to increase its ability to tackle companies that are deemed to have unfairly raised prices. The framework would allow regulators to intervene more quickly during supply shocks, scrutinise company margins and publicly identify firms judged to have increased profits excessively during crises, according to Reuters.

In her speech, Reeves also announced plans to temporarily cut VAT on attractions for children by 15 per cent over the summer holidays.

This article has been updated to reflect new information provided to Retail Systems by HM Treasury in paragraphs three and four.

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