UK Treasury Announces Five Small-Scale Measures Ahead of Budget
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The Treasury unveiled five modest policy changes, including a permanent higher mileage rate and the removal of a carer’s allowance cliff edge, while opposition leaders criticised the initiatives as insufficient for families facing rising costs.
Prime Minister Andy Burnham announced five "everyday fixes" that will be included in tomorrow’s budget, aiming to ease routine expenses for households and workers. The measures, detailed in a Treasury release, include making the 55p-per-mile tax-free mileage rate permanent for the first 10,000 business miles and raising the rate above that threshold to 35p per mile, a change that is expected to benefit around three million employees and self-employed individuals who use their own vehicles for work.
The package also extends parental pay to an additional 150,000 parents each year, covering self-employed fathers and partners who previously did not qualify, and provides two weeks of support worth up to £194 per week. A reform of the Carer’s Allowance will replace the existing cliff edge, allowing carers to retain a portion of their benefit when earnings exceed the weekly limit, with the allowance tapering at a rate of £1 for each extra £1 earned.
Tariffs on more than 100 imported goods, such as baked beans, chocolate and gherkins, will be removed, which the Treasury estimates could save households up to £21 per year on food shopping. Additional Post Office drop boxes will be installed, bringing the total to 1,000 locations, to simplify parcel handling ahead of the holiday season.
"Rampant borrowing, soaring taxes and an utter inability to cut spending mean inflation has already wiped out the benefits of Burnham’s ‘everyday fixes’," said Shadow Chancellor Andrew Griffith, adding that the measures amount to "cheaper gherkins" and constitute "an insult to families".
Commentators noted that while the initiatives are modest, they may still be welcomed by the public. The day’s agenda includes statements from ministers on judicial support, security advice, and other government priorities.