Prime Minister Keir Starmer has confirmed that a planned fuel duty increase for later this year has been scrapped, offering relief to millions of households grappling with the rising cost of living.
Fuel Duty Freeze Extended
Speaking in the House of Commons on Wednesday, Starmer announced that the government would extend the freeze on fuel duty for the remainder of the year, abandoning a planned 5p rise that had been scheduled for the autumn. The decision comes amid the ongoing Iran war, which has already sent petrol and diesel prices soaring at the pumps.
While the freeze provides some stability, motoring campaign groups had called for a cut in fuel duty to further ease financial pressures on drivers. However, the government opted to maintain the current rate rather than reduce it.
Support for Hauliers
In addition to the fuel duty freeze, Starmer revealed a 12-month road tax holiday for hauliers, aimed at keeping transportation costs down. He stated, "Families across the United Kingdom are facing impacts of a war we did not choose, so it's welcome news today that inflation is falling. 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."
The Prime Minister attributed the ability to provide these measures to the country's economic performance, noting that the UK is the fastest growing economy in the G7. He added, "Labour will always protect working people."
Reaction from Industry
John Wilmot, CEO of car leasing comparison site LeaseLoco, welcomed the announcement but urged the government to go further. "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," he said.
The decision to scrap the fuel duty rise is seen as a move to support households and potentially improve the Prime Minister's standing, which has suffered following poor local election results and ongoing economic challenges.
