Rachel Reeves is set to cut food costs and offer free children’s bus fares in a fresh batch of measures aiming to ease the cost of living crisis and impact of the Iran war on the UK.
Staples such as biscuits, chocolate and baked beans could become cheaper as the government slashes import tariffs on more than 100 types of product, in a move which could save consumers a combined £150 million per year.
The chancellor will also announce on Thursday a “Great British Summer Savings” scheme, including free bus travel for children in England during the school holidays in August.
The free bus travel scheme will allow every child aged five to 15 in England to travel on participating local routes.
“My number one priority is protecting households from rising costs,” the chancellor said, although the government is not expected to announce immediate help with rising energy bills.
However, Reeves has ruled out making “massive unfunded spending commitments” to provide universal support with energy bills.
There had been speculation over whether the government could cap supermarket food prices, but these suggestions were met by heavy opposition from the industry and from Bank of England governor Andrew Bailey, who said it would be “unsustainable”.
Net migration drops to lowest level since early 2021
Net migration to the UK stood at an estimated 171,000 in the year to December 2025, down nearly a half (48 per cent) from 331,000 in the previous 12 months, according to new figures from the Office for National Statistics (ONS).
It is the lowest figure since early 2021, when the post-Brexit immigration system was introduced and Covid-19 travel restrictions were still in place.
Net migration is the difference between the number of people moving long-term to the UK and the number of people leaving the country.
An estimated 813,000 people immigrated to the UK in the year to June while 642,000 emigrated.
The continued fall in net migration is being driven by fewer people from outside the EU arriving in the UK for work, the ONS said.
Holly Evans21 May 2026 09:37
Steve Reed to set out powers to limit number of vape shops on high streets
Communities Secretary Steve Reed will use a speech on Thursday to set out proposals to give local communities more power over their areas.
His proposals include minimum standards for services such as pothole repairs and street cleaning, and powers to limit the number of vape shops and gambling businesses on high streets.
He will promise to bear down on private providers of social care following concerns that “profiteering” is driving councils into bankruptcy.
Holly Evans21 May 2026 09:35
Watch: Streeting reveals he told Starmer he would ‘challenge him’ in first interview post-resignation
Holly Evans21 May 2026 09:23
Streeting denies he could back Burnham in leadership challenge
A spokesperson for Wes Streeting has denied a report in The Times quoting unnamed allies of the former minister saying he could drop his leadership bid and back Andy Burnham if the Greater Manchester mayor wins the 18 June Makerfield by-election.
The spokesperson said: “Wes couldn’t have been clearer: he wants Andy to win Makerfield, wants him in the battle of ideas we need in Labour, and Wes will be a candidate in the coming contest.”
Mr Streeting did not launch an immediate challenge following his resignation last week.
Explaining the move on the BBC’s Political Thinking podcast, Mr Streeting said: “If we had been plunged straight into a leadership contest by me or for that matter, anyone else, I think it would have been seen as a deliberate attempt to get ahead of Andy Burnham’s potential return.
“And if there’s one thing that we need to do coming out of a change in leadership, it is to bring the tribes of the Labour Party together, to unite around one leader as one team, drawing on Labour’s different political traditions to unite progressives and beat Reform.”
Holly Evans21 May 2026 09:10
Watch: Jess Phillips says Starmer has resilience of a cockroach in a nuclear war in first interview since resignation
Holly Evans21 May 2026 09:00
Net migration likely to fall again in latest official figures
A fresh drop in the level of UK net migration is likely to be revealed when new figures are published on Thursday.
Net migration – the difference between the number of people moving long-term to the country and the number of people leaving – has been falling for much of the past three years.
The total peaked at a record 944,000 in the year to March 2023 but has dropped steeply since then, reaching 204,000 in the year to June 2025.
New estimates from the Office for National Statistics (ONS) on Thursday will cover the 12 months to December 2025 and are expected to show an even lower number.
The fall in net migration is being driven by two trends: a steady decline in people from outside the EU coming to the UK to work, study or join other family members; and a rise in the number of people leaving the UK for other countries, primarily non-EU students who have completed their education.
The drop in people coming to study and work is due to policy changes introduced by the previous Conservative government and continued by the current Labour administration.
These changes began in January 2024 when most overseas students were no longer able to bring family members to the UK.
Holly Evans21 May 2026 08:52
Chancellor will not rush to take universal action on energy bills, says Treasury minister
The chancellor will not rush to take action on energy bills, and any support is likely to be targeted, the chief secretary to the Treasury has suggested amid growing cost of living pressures as a result of the war in the Middle East.
“The chancellor has been clear that she wants to monitor the situation, and then she’s going to intervene in a targeted way”, Lucy Rigby told Sky News.
She added: “The way that the last government dealt with this and intervened in an untargeted way, which is hugely costly for the taxpayer.
“The chancellor’s been clear that she’s not going to rush to action, she’s not going to rush to any sort of universal action in that way. What she is doing is monitoring the situation internationally, monitoring the situation when it comes to our economy and the likely impact on energy bills.”
Holly Evans21 May 2026 08:43
Minister refuses to say whether cost of living pressures will increase
A minister refused to say whether the government believes things will get harder for people as a result of the conflict in the Middle East.
Asked whether the government’s latest measures to tackle the cost of living signals an admission that things will get harder for people, Treasury chief secretary Lucy Rigby said: “Clearly, because of what’s happening internationally, and particularly the crisis in the Middle East, we know that people are concerned.
“And we’ve seen the impact of that coming through.
“What the chancellor has been clear about is that she will take action, we’re going to do that in a responsible way.”
Millie Cooke21 May 2026 08:27
Streeting insists he will ‘never forget’ his council estate roots
Wes Streeting insisted he would “never forget” his roots after growing up on a council estate in east London.
“I’ve never forgot my roots. I’m proud of my roots”, he told the BBC’s Political Thinking podcast.
“I wish that at times when I was growing up, that life wasn’t as hard as it was. And I don’t want it to be that hard for other kids now.
“And the tragedy in our country today is the kids that I represent in my constituency on the London-Essex border, the council flat that I wanted to escape when I was growing up, those kids now aspire to.
“Because they’re not in a council flat. They’re in grotty temporary bed and breakfast accommodation. And the kicker is that we are paying about 3 billion quid a year for the privilege of putting these kids in grotty accommodation that stunts their development, their life chances, their opportunities.”
Millie Cooke 21 May 2026 08:22
What else do we have on today?
At 11:30am, Rachel Reeves is set to announce measures to east the cost of living to the Commons. The chancellor is expected to cut food costs and offer free children’s bus fares in a fresh batch of measures aiming to ease the impact of the Iran war on the UK.
At 9.30am, the Office for National Statistics are set to announce a drop in the level of UK net migration, and the latest figures on asylum, resettlement and visas.
Labour MPs are reportedly planning to use the upcoming figures to pile pressure on the Home Office and Shabana Mahmood to reverse its plans for further immigration reforms.
We also have housing secretary Steve Reed giving a speech on neighbourhood standards at 10:15am, who will promise to bear down on private providers of social care.
Former health secretary Wes Streeting has also laid out his plans to introduce a wealth tax if he were to become prime minister, and has revealed that he informed Sir Keir of his intention to challenge him for the leadership last week.
Holly Evans21 May 2026 08:18