Starmer Opens Door to Cancelling Fuel Duty Increase as Iran Conflict Bites
Prime Minister Keir Starmer has indicated that a scheduled fuel duty rise could be abandoned, responding to mounting concerns over how the Middle East crisis might affect the UK economy. During a tense Prime Minister's Questions session, Starmer stated that the planned 5p per litre increase, set for September, would be "kept under review." This move signals a potential reversal of government policy, following earlier insistence from Chancellor Rachel Reeves that the hike would proceed.
Economic Pressures from Iran Conflict Prompt Review
Fuel duty has been frozen to assist drivers with living costs, but this measure is due to expire in the autumn. The chancellor has previously resisted calls to cancel the planned increase, despite oil prices surging more than 20% to over $100 a barrel and gas prices jumping over 50% due to Donald Trump's war on Iran. These spikes have heightened fears of a cost-of-living crisis reminiscent of the 2022 situation triggered by Russia's invasion of Ukraine.
Pressed by Tory leader Kemi Badenoch, Starmer asserted, "We are not increasing the cost of petrol. We are absolutely clear in taking the measures that are necessary to deal with the impact of the conflict in Iran." He emphasised collaboration with allies to de-escalate the situation, adding, "Fuel duty is frozen. It is going to remain frozen until September. And we will keep the situation under review in light of what is happening in Iran." Later, responding to Tory MP Graham Stuart, he reiterated, "In light of what is happening in Iran of course we will look carefully at the situation."
Contrast with Chancellor's Stance and Political Sparring
Starmer's comments mark a notable departure from statements made earlier this week by Chancellor Rachel Reeves, who had insisted the rise would go ahead. During Commons statements and Treasury questions, Reeves maintained, "Of course we always keep taxes under review," but justified the increase by noting fuel duty is 11p a litre lower than it would have been under previous Tory government plans.
The exchange grew heated as Starmer criticised Badenoch for her own U-turn on UK involvement in US-Israel strikes against Iran. He accused her of "relentlessly" attacking him for refusing to join initial strikes, then changing her position, calling it "the mother of all U-turns on the single most important decision a prime minister ever has to take." Starmer claimed Badenoch and Nigel Farage were "spooked" and "furiously trying to backpedal" on their stance.
Reactions from TaxPayers' Alliance and Conservatives
John O'Connell, chief executive of the TaxPayers' Alliance, welcomed the potential cancellation, stating, "Motorists will be desperately hoping that the prime minister is getting ready to slam the brakes on the planned fuel duty hike. Prices at the pump are set to surge over the coming weeks, and yet the government is currently planning to pour petrol on the flames by driving up prices even further. The chancellor needs to put taxpayers' minds at ease by putting a stop to the hike."
In contrast, a Conservative Party spokesman condemned Starmer's performance, saying, "We have just seen a truly shameful display from the prime minister. Six times he was asked why he is raising fuel duty for families and businesses this year, six times he refused to answer, instead smearing the Leader of the Opposition and deliberately misrepresenting her position on Iran and our armed forces. Keir Starmer has shown he doesn't care about drivers and doesn't care about the cost of living. He has no answer on petrol prices, because he knows that raising fuel duty for the first time in 15 years is the clearest possible symbol of Labour's total mismanagement of the economy."
As the situation unfolds, the government's review of fuel duty will be closely watched, with economic stability and driver affordability hanging in the balance amid ongoing international tensions.
