Planned fuel duty rise to be scrapped, says Keir Starmer

PM tells Commons extending the temporary 5p cut is a necessary response to cost-of-living pressures

Keir Starmer has announced an extension to the temporary 5p cut in fuel duty, as widely expected , telling the Commons it was a necessary response to cost-of-living pressures.

Before a wider package of measures due to be announced by Rachel Reeves , the chancellor, on Thursday, Starmer used prime minister’s questions to announce the extended freeze and a vehicle tax break for the haulage industry.

At the last budget, Reeves announced she would freeze fuel duty for nine months but that she would end a temporary 5p cut, first announced by Rishi Sunak in 2022 after Russia’s full-scale invasion of Ukraine, beginning in September.

Asked by the Labour MP Kirsteen Sullivan about whether the government could do more to help with cost-of-living pressures, Starmer replied: “There is more that we can do, and I can announce today that we are giving our hauliers a 12-month vehicle tax holiday, helping to keep prices down, and we are 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. She will set out further action tomorrow.”

Referring to increased fuel prices caused by the US-Israeli attack on Iran, Starmer added: “This is not our war, but while the parties opposite wanted to jump into it, Labour will always protect working people.”

Responding for the Conservatives, Kemi Badenoch sought to claim credit for the decision, saying it was a U-turn caused by her pressure.

Starmer rejected this, saying it was only because of what had happened with Iran, adding: “I know the leader of the opposition likes to claim responsibility for things that have got literally nothing to do with her. In her mind, she won Eurovision on Saturday and scored the winning goal in the FA Cup final.”

The cost of the package, including postponing the 5p rise and the discount on red diesel duty, is expected to be around £400m, and the chancellor will set out more details on Thursday about how it will be funded.

The Treasury has not made clear whether the full 5p increase would be expected to go ahead in January, insisting the timing of any future move will be announced at the autumn budget.

A Treasury announcement, released as Starmer spoke, said that by the end of 2026 the freeze of fuel duty would have saved the average driver £120 over two years, while the one-year pause on vehicle excise duty would save £600 for a typical heavy lorry.

In quotes released by the Treasury, Reeves said: “The war in Iran is pushing up fuel prices here at home but after strong growth at the beginning of the year, I am stepping in to protect people at the pump

“By protecting households and businesses we are building a stronger and more secure economy for Britain. That is the right economic plan.”