Keir Starmer bowed to pressure from struggling drivers today as he announced the fuel duty freeze will stay in place. At PMQs, Sir Keir said a 5p rise in duty planned for September was being delayed as part of moves to help Brits hit by the Middle East crisis. But he only said that the level would be kept on hold 'until the end of the year' - raising the prospect that it will go ahead at that point.
Clashes with Kemi Badenoch
The news emerged amid clashes with Kemi Badenoch in the Commons, where the Tory leader condemned the premier for restricting drilling in the North Sea. Hauliers are also being given a road tax 'holiday' for a year.
Chancellor's Statement
Outside the chamber, Chancellor Rachel Reeves said: 'I'm keeping taxes down for drivers and businesses – putting money in the pockets of millions of workers and cutting costs for farmers and hauliers. 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.'
Impact on Drivers and Economy
The decision to freeze fuel duty is expected to provide immediate relief to motorists facing higher costs due to global instability. However, critics argue that delaying rather than cancelling the rise creates uncertainty for households and businesses planning their finances. The government maintains that this temporary measure is necessary to support economic stability while addressing external pressures.
