Labour goes sweet on Brexit as Rachel Reeves uses freedom outside the EU to cut tariffs on chocolate and biscuits in cost of living drive

By JASON GROVES, POLITICAL EDITOR Published: 22:30, 20 May 2026 | Updated: 22:52, 20 May 2026 Rachel Reeves is to use the UK's Brexit freedoms to cut tariffs on chocolate and other goods to ease the cost of living. The Chancellor will unveil a package of measures on Thursday designed to show the government is working to soften the economic fallout from the Iran war. Ms Reeves has been a fierce critic of Britain's decision to leave the EU, claiming it did 'deep damage' to the economy. She is leading the push in Cabinet to drive Britain closer to Brussels, including signing up for EU rules that the UK would have no say over. But she will now use the freedom of being outside the EU to cut tariffs on a range of food products in the hope of easing inflation. The Treasury said biscuits, chocolate, dried fruit and nuts would be among a number of food products where import levies will be cut. Tariffs on chocolate can currently be as high as 16 per cent. Retailers will be asked to pass on the savings to consumers. Treasury sources confirmed the move is only possible because the UK is outside the EU's customs union which levies a standard tariff affecting the entire bloc. Former Tory business secretary Sir Jacob Rees-Mogg welcomed the move and urged ministers to go further in exploiting the opportunities of trading outside the EU. He told the Mail: 'I have long called for us to take tariffs off food and clothing we do not produce in this country – it is one of the great Brexit benefits. Chocolate and biscuits could become cheaper under plans to cut import tariffs Rachel Reeves has savaged Brexit, but is now exploiting the freedom of being outside the EU 'The Chancellor has been very critical of Brexit but there is more joy in heaven over one sinner repenteth. 'The Government does have to be careful because if they have this big reset with Brussels they risk losing these flexibilities which they currently enjoy.' The intervention from the Chancellor is set to be the biggest since the Iran war started in February. Treasury sources said there will be no help with rising energy bills until at least October. And Ms Reeves is expected to warn that any bailout will be targeted at helping people on benefits and low incomes. Ms Reeves has rejected calls to repeat the energy bills bailout introduced by the last Conservative government in 2022. This capped bills for every household but came at a punishing £40 billion cost the taxpayer. Ms Reeves will warn that repeating the exercise could push up interest rates and add £600 a year to the average mortgage. Insiders say the exact size of the package will not be determined until the autumn. But it will be far smaller than the bailout that followed Russia's full-scale invasion of Ukraine, with benefit claimants likely to be the main beneficiaries. Instead, the Chancellor will set out proposals for a series of modest measures designed to help families cope with the rising cost of living. These will include introducing free bus travel for the under-16s throughout August as part of a package of 'Great British Summer Savings' designed to help with holiday costs. Ms Reeves last night said protecting households from rising costs was her 'number one priority'. She added: '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. 'As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.' The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.