Chancellor Rachel Reeves has confirmed a £120 discount for drivers as she braces for a demotion in the government, with Andy Burnham set to replace Sir Keir Starmer as Labour leader. Reeves, who hinted on Thursday she is likely to be replaced, extended the fuel duty cut until the end of the year, saving motorists £120 since 2025.
Fuel Duty Extension and Cost of Living Support
This extension comes alongside other government measures to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases, and raising the minimum wage. Reeves stated: 'Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK.'
She added: 'This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, freezing prescriptions and rail fares. We are able do this because we have made the right choices, resulting in the UK having the fastest growing economy in the G7, with inflation going down.'
North Sea Oil and Gas Licences
Speaking on Thursday, Reeves also confirmed her desire for the government to approve licences for the Rosebank and Jackdaw oil and gas fields in the North Sea. She said: 'I’ve been very clear that I think that the North Sea is a crucial asset for the UK, and that oil and gas will be an important part of our energy mix for years to come. And I’m very keen to make sure that we use that resource, to ensure our energy security.'
Reeves noted that decisions on both Rosebank and Jackdaw are quasi-judicial and will be made shortly, adding: 'But in our manifesto two years ago, we committed to honour existing licences, and I hope that we do.'
