Prime Minister Keir Starmer has indicated the government may reconsider a planned fuel duty increase, despite Chancellor Rachel Reeves ing reluctance to abandon it. The leader faces mounting pressure to drop the 5p per litre rise as oil prices climb due to the ongoing conflict in Iran.
Starmer’s Position at PMQs
During Prime Minister’s Questions yesterday, Starmer confirmed that fuel duty remains frozen and will stay that way until September. He added, “Fuel duty is frozen. It’s going to remain frozen until September and we will keep the situation under review in light of what’s happening in Iran.”
Reeves Stands Firm on Market Solutions
Earlier that day, before the Treasury Committee, Reeves voiced opposition to using public funds for fuel price relief. She stated, “I’m very loath to spend government money on something that the market should be doing itself and that’s why greater competition and greater transparency about pricing is so important. I would rather we had a properly functioning market where customers have decent information about prices at different petrol forecourts rather than subsiding the money which often actually just goes to the retailer.”
Opposition Warns of Cost-of-Living Impact
Conservative leader Kemi Badenoch criticized the policy, set to roll out gradually from September, adding one penny per litre in tax within six months—the first hike in 15 years. She argued it exacerbates drivers’ financial strains and predicted a policy reversal. Badenoch remarked, “Labour think drivers are a cash cow and now they’re hiking fuel duty for the first time in 15 years. Everyone in this House knows the pattern. First he’ll march his backbenchers up the hill, then they’ll be forced to defend fuel duty rises in the local elections, then there will be another humiliating U-turn. So, why doesn’t the Prime Minister just stand up, admit he’s got it wrong again and scrap the fuel duty hike now?”
