In a significant move for millions of motorists, Chancellor Rachel Reeves has announced a freeze on fuel duty in her Labour Party's Autumn Budget. The decision puts an end to widespread speculation that a major rule change was imminent, delivering a reprieve for petrol and diesel owners across the United Kingdom.
Budget Details and Financial Impact
The new measures confirm that fuel duty rates will remain frozen at 52.95p per litre. This freeze is set to last for another 10 months, ensuring stability at the pumps until at least September 2026.
Crucially, the Conservative Party's 5p per litre fuel duty cut, which was first introduced in March 2022, has been retained. There had been strong rumours that this temporary cut would be axed in the Budget, but the Chancellor has opted against this course of action.
Political and Public Reaction
The decision has drawn mixed reactions from campaigners and politicians. Motorist groups had been fervently calling on the government to protect drivers with either a continued freeze or even a further cut.
Broxbourne MP Lewis Cocking had previously warned that the Budget could be "disastrous" for working people, labelling fuel duty as "one of the worst taxes we've got in this country".
Adding to the criticism, Lord Mackinlay, the former Conservative MP for South Thanet, stated, "They're just looking to spend. They want to tax anything that moves, and literally, the thing that moves a lot in this country are vehicles." He also highlighted that the potential loss of the 5p cut would be a "regressive tax, going to hit the poorest hardest."
Howard Cox of Fair Fuel UK issued a stark warning, suggesting that increasing fuel duty would lead to a drop in economic activity, lower consumer spending, and reduced business investment. His petition against a hike garnered tens of thousands of signatures.
Government's Consumer-Focused Measures
Defending her position, Chancellor Rachel Reeves commented to The Sun, stating, "Petrol prices are like the Wild West with drivers getting ripped off."
She announced a new government initiative to help motorists, saying, "We're launching our Fuel Finder so drivers will always know where to get the best deal." This tool is designed to increase price transparency and promote competition among retailers.
