Chancellor Rachel Reeves has defended the government's planned fuel duty increases, despite soaring oil prices following the Iran war. In a statement to MPs on Tuesday, she ruled out repeating the across-the-board subsidies introduced by Liz Truss in 2022, saying that approach had left the UK with high levels of national debt.
Reeves acknowledged the pressure on households from rising energy costs but indicated that any support would be targeted at poorer households, rather than universal. She said officials were working with the Department for Work and Pensions and local authorities to assemble the necessary data for more precise assistance.
The chancellor confirmed that the government would not cancel the scheduled 1p rise in fuel duty in September, nor the subsequent 2p rises in December and March. However, she promised to give an update on fuel pricing within the next month. Petrol prices have already risen by 13.5p per litre since the start of the conflict, according to the RAC.
To prevent profiteering, Reeves said the Competition and Markets Authority would be given the powers needed to stop companies exploiting the crisis. She also plans to meet supermarket and bank bosses later this week to discuss ways to help consumers.
On energy policy, Reeves reiterated the government's commitment to the clean energy transition, arguing that the Iran war reinforces the case for renewables. She pledged to legislate to speed up nuclear power construction and change planning rules to protect critical energy projects from legal challenges.
