Chancellor Rachel Reeves has updated MPs on measures to counter the economic impact of the Iran war, but stopped short of cancelling planned fuel duty increases. She promised to give an update on fuel pricing within the next month.
Fuel duty is due to rise by 1p per litre in September, with further increases of 2p in December and March, reversing a 5p cut introduced by the previous government. Petrol prices are already 13.5p per litre higher than before the conflict, with oil above $100 a barrel.
Reeves ruled out across-the-board subsidies like those introduced by Liz Truss in 2022, favouring targeted support for poorer households. Energy bills are expected to fall in April but rise to nearly £2,000 in July when the next quarterly price cap takes effect.
The chancellor also said the government would give the Competition and Markets Authority powers to prevent profiteering, meet supermarket and bank bosses, pursue a sanitary and phytosanitary deal with the EU to cut food prices, and review tariffs on some agrifood imports. Measures to speed up nuclear power construction under the Fingleton review will also be legislated.
