Keir Starmer Scraps Planned Fuel Duty Rise, Extends 5p Cut

Prime Minister Keir Starmer announced an extension of the temporary 5p cut in fuel duty during Prime Minister’s Questions on Wednesday, citing the need to ease cost-of-living pressures on households.

Starmer also unveiled a 12-month vehicle tax holiday for the haulage industry, part of a broader package of measures expected to be detailed later Thursday by Chancellor Rachel Reeves.

At the last budget, Reeves had said she would freeze fuel duty for nine months but end the 5p cut — first introduced by former Prime Minister Rishi Sunak in 2022 after Russia’s full-scale invasion of Ukraine — starting in September.

Responding to a question from Labour MP Kirsteen Sullivan about further cost-of-living support, Starmer said: ‘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.’

Starmer added: ‘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 rising fuel prices linked to the US-Israeli attack on Iran, Starmer stated: ‘This is not our war, but while the parties opposite wanted to jump into it, Labour will always protect working people.’

Conservative leader Kemi Badenoch responded by claiming the decision represented a U-turn forced by her pressure, seeking to take credit for the policy.

Starmer rejected that assertion, attributing the move to events in Iran, and added: ‘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.’

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

In remarks issued 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.’

Reeves added: ‘By protecting households and businesses we are building a stronger and more secure economy for Britain. That is the right economic plan.’