fuel duty

Fuel duty is a tax levied by the government on petrol and diesel fuel sold in the UK. Historically, it has been subject to regular increases. However, recent news indicates a significant shift in policy driven by the ongoing cost-of-living crisis. Both Keir Starmer and Chancellor Rachel Reeves are reportedly planning to scrap or extend the freeze on planned fuel duty rises. This is a direct response to the financial pressures faced by households and industries, particularly the haulage sector which benefits from a vehicle tax break. The government is considering cancelling a 1p rise due in September and potentially all of a 5p rise scheduled over the next six months. This move is part of a broader strategy to mitigate the impact of inflation and high energy costs, making it a highly relevant and significant policy decision currently impacting consumers and businesses.