Rachel Reeves set to ditch fuel duty rise amid rising pump prices
Car changing is a big deal
Chancellor Rachel Reeves is expected to scrap the planned 5p fuel duty rise, according to reports by The Sun.
Chancellor of the exchequer Rachel Reeves is expected to announce that the planned 5p increase in fuel duty will be cancelled, according to a report by The Sun.
The move, which could be confirmed later this week, is being framed as part of a wider effort to ease cost-of-living pressures as the economic fallout from the Iran war continues to weigh on inflation and growth prospects.
Fuel duty on petrol and diesel had been scheduled to rise this September. This duty will increase gradually: 1p in September, 2p in December, and another 2p in March 2027.
However, political pressure has mounted against the increase. Several political parties have criticised the proposal, arguing it would hit households already struggling with high bills.
Government insiders said discussions had been ongoing, with one source noting that “they have been looking at fuel duty,” according to The Sun.
Carwow has approached the Treasury for comment.
The expected decision would extend a long-standing freeze on fuel duty, which has remained largely unchanged for around 15 years.
The issue was also tied to broader economic concerns referenced in and around the Autumn Budget, where the government set out priorities aimed at stabilising inflation and supporting households through ongoing cost of living pressures.
Reeves has previously said she would do “everything in my power” to protect families from economic shocks, as ministers continue to monitor inflation, which has been forecast by some analysts to reach as high as 6.2%.
Economists have warned that global instability linked to the Iran conflict could push up prices further and slow growth in the months ahead. UK economic output rose by 0.3% in March, slightly ahead of expectations, but analysts say that momentum could weaken if energy and transport costs rise.
A fuel duty increase, they argue, would risk adding further upward pressure on inflation, which the government is targeting at 2%.
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