Chancellor Rachel Reeves has confirmed that a planned 5p fuel duty rise will not go ahead, providing relief for motorists facing soaring petrol and diesel prices. The decision comes after mounting pressure on the government to scrap the increase amid the Iran war, which has already driven up fuel costs significantly.
Fuel Duty Frozen for the Rest of the Year
Ms Reeves announced that fuel duty will remain frozen for at least the remainder of the year, cancelling the autumn increase. This move is part of the government's primary mission to support families with the cost of living. A further fuel duty hike would have been politically toxic at a time when the Prime Minister is fighting to save his job, and would have sent fuel prices surging even higher, piling more pressure on households as winter approaches.
Additional Cost of Living Measures
On Thursday, Ms Reeves outlined a series of measures to help with the cost of living, including free bus travel for children and VAT cuts on summer attractions. These initiatives aim to ease the financial burden on families across the country.
Industry Reaction
John Wilmot, CEO of car leasing comparison site LeaseLoco, welcomed the freeze, stating: "This is good news for motorists at a time when households are continuing to deal with a cost of living crisis and the soaring costs of fuel due to instability in the gulf. But while we welcome this news, we would like to see the government go further to ease the costs facing drivers by cutting the rate of tax on fuel."
Government Support for Hauliers
Prime Minister Keir Starmer told the House of Commons on Wednesday: "There is more that we can do, and I can announce today we are giving our hauliers a 12-month road tax holiday, helping to keep prices down, and we're backing drivers by extending the freeze in fuel duty for the rest of the year. This is possible because of the decisions taken by the Chancellor, making us the fastest growing economy in the G7."
The fuel duty freeze is expected to provide significant relief for motorists and businesses, helping to stabilise prices during a period of global uncertainty.
