Sir Keir Starmer has indicated that the government may reconsider a planned fuel duty increase, despite Chancellor Rachel Reeves rejecting such calls. The Prime Minister noted that the measure remains under review due to escalating oil prices from the Iran conflict.
Prime Minister’s Position at PMQs
During Prime Minister’s Questions, Starmer confirmed the current fuel duty freeze persists until September. He stated: “Fuel duty is frozen. It’s going to remain frozen until September and we will keep the situation under review in light of what’s happening in Iran.”
This stance highlights a divergence from the Chancellor, who earlier ed reluctance to abandon the hike during Treasury Committee scrutiny.
Chancellor’s Market-Focused Approach
Reeves emphasized promoting competition over subsidies. She said: “I’m very loath to spend government money on something that the market should be doing itself and that’s why greater competition and greater transparency about pricing is so important. I would rather we had a properly functioning market where customers have decent information about prices at different petrol forecourts rather than subsiding the money which often actually just goes to the retailer.”
Opposition Warns of Cost-of-Living Impact
Tory leader Kemi Badenoch cautioned that the planned gradual increase, set for September, will add a penny per litre in tax and exacerbate drivers’ cost-of-living pressures. She remarked: “Labour think drivers are a cash cow and now they’re hiking fuel duty for the first time in 15 years. Everyone in this House knows the pattern. First he’ll march his backbenchers up the hill, then they’ll be forced to defend fuel duty rises in the local elections, then there will be another humiliating U-turn. So, why doesn’t the Prime Minister just stand up, admit he’s got it wrong again and scrap the fuel duty hike now?”
