Keir Starmer opens door to scrapping 5p fuel duty hike
Sir Keir Starmer has signaled a move to cancel a fuel duty increase amid concerns about the impact the Middle East crisis will have on the UK economy.
The Prime Minister told MPs the planned 5p increase will be “reviewed” before it comes into effect in September.
Fuel duty is currently frozen to help drivers with living costs, but will end this autumn. Chancellor Rachel Reeves has so far resisted calls to cancel the planned hike in response to a surge in oil prices caused by Donald Trump’s war on Iran.
But his comments, which came during a tense exchange at Prime Minister’s Questions, pave the way for another possible U-turn.
Pressed on the issue by Conservative Party leader Kemi Badenoch, the prime minister said: “We are not increasing the cost of petrol.
We are absolutely committed to taking the necessary measures to deal with the impact of the conflict in Iran.
“We are dealing with this with our other allies, we are taking the necessary steps. But the best we can do is work with others to reduce tensions.”
He added: “Fuel duty has been frozen. It will remain frozen until September. We will keep the situation under review in light of what is happening in Iran.”
Later, in response to Conservative MP Graham Stuart, he added: “We will of course look at the situation carefully in the light of what is happening in Iran.”
Sir Keir’s remarks were a marked change from comments made earlier this week by the chancellor, who insisted the increase would continue in September.
When the issue was touched upon in a statement to the House of Commons on Monday and then during Treasury questions on Tuesday, he added: “Of course we always keep taxes under review.”
Fears of a cost-of-living crisis like the one experienced in 2022 as a result of Russia’s invasion of Ukraine have been further fueled by oil prices rising more than 20 percent to more than $100 a barrel and gas prices rising more than 50 percent.
But Ms Reeves justified the increase by claiming fuel duty was already 11p per liter below the previous Tory government’s plans.
Ms Badenoch responded to the fuel tax comments in response to the Prime Minister’s lengthy criticism that he had U-turned on whether Britain would join the US and Israel in attacking Iran.
Sir Keir said Ms Badenoch had “brutally” attacked him for refusing to join the initial US-Israeli attacks before changing her position.
“Yesterday, following the economic fallout, the opposition leader completely abandoned his position,” he said. “He said I never said we should join the BBC.”
He added: “This is the mother of all U-turns on the most important decision a prime minister has ever had to make – whether to take the UK into war.”
He said he and Nigel Farage were “terrified” and were now “angrily trying to back down”.
Responding to the possibility that the fuel tax increase could be rescinded, Taxpayers Alliance chief executive John O’Connell said: “Motorists are desperately hoping the prime minister is preparing to put the brakes on the planned fuel duty rise.
“Prices at the pump are expected to rise in the coming weeks, but the government is now planning to pour fuel on the flames by increasing prices even further.
“The Chancellor needs to reassure taxpayers by stopping the increase.”
A Conservative Party spokesman said: “We have witnessed a truly disgraceful display from the Prime Minister. Asked six times why he increased the fuel tax on families and businesses this year, he refused to answer six times, instead denigrating the Leader of the Opposition and deliberately misrepresenting his stance on Iran and our armed forces.”
“Keir Starmer has shown that he doesn’t care about drivers and he doesn’t care about the cost of living. He has no answer for petrol prices because he knows that raising fuel duty for the first time in 15 years is the clearest possible symbol of Labour’s complete mismanagement of the economy.”
