Keir Starmer has announced an extension of the 5p fuel duty freeze to support British families facing the rising cost of living. During PMQs, he highlighted the challenges brought on by circumstances beyond the nation’s control and expressed relief that inflation is decreasing, emphasizing the need for further action.
In his statement, Starmer revealed plans for a 12-month road tax holiday for haulers to help stabilize prices and the continuation of the fuel duty freeze for the remainder of the year. These measures, made possible by decisions from the Chancellor, have contributed to the UK becoming the fastest-growing economy in the G7.
Originally set to expire in September, the 5p fuel duty cut has been prolonged by three months until the year’s end, resulting in an average savings of £120 for drivers since 2025. Additionally, a year-long road tax break will provide significant savings for drivers of heavy lorries and larger vehicles.
Furthermore, farmers, rail freight operators, and red diesel users will benefit from a more than one-third reduction in fuel duty until the end of the year, marking the lowest rate in over two decades. Chancellor Rachel Reeves made the decision to cancel the planned fuel duty increase in response to the disruptions caused by the blockade of the Strait of Hormuz during the conflict in Iran.
Reeves emphasized the impact of the Iranian war on domestic fuel prices and stressed the importance of safeguarding consumers from escalating costs. She highlighted the government’s commitment to supporting households and businesses to fortify the UK’s economy and outlined forthcoming initiatives to assist low-income families with surging energy bills.
To address the issue of rising heating oil expenses, particularly affecting rural households, the government has allocated £50 million for subsidies, with a focus on regions like Northern Ireland. Rachel Reeves is expected to unveil additional strategies later this year to alleviate the financial burden on vulnerable households.
