Rachel Reeves to unveil free bus travel scheme and cheaper food in major cost-of-living package

The plans include free bus travel throughout August on participating local services across England, alongside a suspension of import taxes on more than 100 products.

Items expected to be included in the tariff cuts include biscuits, chocolate, dried fruit and nuts, with the full list due to be published next week.

The tariff reductions are forecast to save consumers more than £150million a year.

Under the free travel scheme, all children aged between five and 15 will be able to use local bus services at no cost during the summer holidays in August.

The Government is spending more than £100million on the initiative, including support for bus operators facing higher running costs.

The package has been branded the "Great British Summer Savings" scheme and is designed to help families manage costs during the school holidays.

The suspension of import tariffs forms part of a broader governmental strategy to combat inflation, with the complete product list due for publication in the coming week.

These measures follow recent government interventions including an extension of the 5p fuel duty reduction until year's end, alongside tax relief for haulage companies and assistance with red diesel expenses for agricultural businesses.

Prime Minister Sir Keir Starmer emphasised the practical nature of the support, stating: "We know many hardworking families are still feeling the squeeze and too often think they have to hold back.

"By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we're putting money back into people's pockets and making life that bit easier."

Ms Reeves described protecting households from escalating costs as her primary concern.

"This summer I want every family to be able to enjoy themselves, that's why we're launching the Great British Summer Savings Scheme, and why we're helping kids with free bus travel throughout August," the Chancellor said.

She added that her economic approach remained appropriate as the Iran conflict drives domestic prices upward.

The household energy price cap is forecast to climb by £209 annually from July following the closure of the Strait of Hormuz, which has driven up global oil and gas prices.

Energy consultancy Cornwall Insight predicts the cap will reach £1,850 for a typical dual fuel household between July and September, representing a 13 per cent rise from April's £1,641 figure.

Despite this, the Chancellor is not expected to announce immediate assistance with energy bills on Thursday, with any targeted winter support package likely to be finalised in September.

April's inflation rate dropped to 2.8 per cent from 3.3 per cent the previous month, according to ONS figures, though this largely reflected Ofgem's seven per cent reduction in the price cap.

Ministers remain cautious about universal support schemes, warning that unfunded measures could push up borrowing costs and mortgage rates.