Now even Keir Starmer’s ‘cost of living tsar’ says Rachel Reeves should scrap fuel duty hike as Brits are hammered by rising pump prices due to Iran crisis
Keir Starmer’s cost of living tsar today called on the Government to cancel a planned increase in fuel duty as British motorists are hit by rising pump prices due to the Iran war.
Icelandic supermarket boss Richard Walker has piled up mounting pressure on Chancellor Rachel Reeves to cancel an impending fuel tax increase in September.
Fuel duty has been frozen since 2011 and will be reduced by 5p in 2022 in response to Russia’s invasion of Ukraine.
But at last year’s Budget, Ms Reeves said the 5p deduction would be removed between September this year and March 2027.
It faces demands to make a U-turn on those plans in the wake of the Middle East crisis, which has caused a rise in global oil and gas prices.
According to the RAC, the latest average price of diesel in the UK since the start of the Iran war on February 28 is 185.2 pence, an increase of 30 per cent.
Average gasoline prices increased by 16 percent in the same period, reaching 154.5 pence per liter.
Even Keir Starmer’s ‘cost of living czar’ now says Rachel Reeves should cancel fuel duty hike as Brits take a hit from soaring pump prices due to Iran crisis
Other countries, including Australia, have already moved to mitigate the impact of price increases for drivers amid chaos in the Middle East.
Keir Starmer’s cost of living tsar Richard Walker has called on the Government to cancel a planned increase in fuel duty as motorists are negatively affected by increased pump prices due to the Iran war.
Icelandic supermarket boss Lord Walker steps up growing pressure on Chancellor Rachel Reeves to cancel impending fuel tax rise in September
Lord Walker told BBC Radio 4’s Today program on Friday: ‘The 5p fuel duty cut… is interesting. This period will end in September.
‘I think given where we are, we need to think and talk about expanding or extending it.
‘Interestingly, I read that the Australian government has recently cut fuel duty by 14p per litre. So this deduction is 5p.’
Lord Walker was also asked about Tory MP Simon Wolfson’s comment that the Treasury should not profit from the Iran war.
Lord Wolfson, Next’s chief executive, said the government would be charging higher fuel duty due to spiked prices and could ‘balance the books’ by reducing this levy to ensure the levy remains the same.
Labour’s Lord Walker said: ‘Lord Wolfson is a wonderful man and very intelligent and he may be right about that.’
The Prime Minister had previously promised that the planned increase in fuel taxes from September would be kept ‘under review in light of what is happening in Iran’.
The government has stepped up efforts to help drivers find the cheapest fuel in their area through a price comparison website.
But rival parties have called for faster action and set out their own plans to cut the price of petrol and home energy bills as households face the prospect of a rise in energy bills later this year.
The Conservatives have called for VAT to be abolished on energy bills over the next three years, while Reform UK has pledged to reduce VAT on fuel and remove green taxes on energy bills, and the Liberal Democrats have said there should be a 10 per cent cut in fuel duty.
According to the RAC, the latest average price of diesel in the UK since the start of the Iran war on February 28 is 185.2 pence, an increase of 30 per cent.
A Treasury spokesman said: ‘We have the right economic plan for a more unstable world, taking a responsible approach to supporting people working in the national interest.
‘Fuel duty has been frozen until September and we are providing targeted support for those facing higher heating oil costs.
‘We are also acting to protect people from unfair price increases and reduce food prices at the till.’
Sir Keir named Lord Walker a ‘cost-of-living champion’ in February, despite Labor having previously given the Prime Minister only a ‘six out of ten’ rating.
45 year old He is the son of Malcolm Walker, president of Iceland and founder of the supermarket chain.
He previously hoped to become a Conservative MP but left the Conservative Party in 2023 before supporting Labour.
The businessman attended the launch of Labour’s manifesto ahead of the 2024 general election, but later went on to criticize Sir Keir’s first few months in power.
He gave the Government a poor ‘six out of ten’ rating for its performance last year and also criticized Ms Reeves’ tax increases on businesses.
Despite his comments, Sir Keir granted a lifetime peerage to Lord Walker, who has previously expressed interest in becoming Prime Minister, earlier this year.
