Fuel Duty Rise Under Review Amid Middle East Tensions
Sir Keir Starmer has announced that the planned increase in fuel duty scheduled for September will remain under review due to ongoing conflict in the Middle East.
The tax on petrol and diesel is set to increase from September, coinciding with the gradual removal over six months of a 5p cut introduced following Russia's full-scale invasion of Ukraine.
Debate at Prime Minister's Questions
During Prime Minister's Questions, Conservative Party leader Kemi Badenoch predicted that Sir Keir would be compelled to make "another humiliating U-turn" and urged him to cancel the fuel duty rise.
"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?"
Sir Keir responded to MPs by stating that fuel duty is currently "frozen until September" and emphasized that the government will continue to monitor the situation closely in light of developments in Iran.
"We will keep the situation under review in light of what's happening in Iran."
Opposition Response to Energy Price Increases
Opposition parties have intensified their efforts to maintain the fuel duty cut amid rising energy prices following US and Israeli strikes on Iran.
Chancellor Rachel Reeves, addressing MPs on Tuesday, noted the volatility of oil prices and committed to ongoing review of the situation.
"The situation is very volatile," Reeves said, highlighting fluctuating oil prices.
Speaking to the Treasury committee on Wednesday, she added that it was "much too early" to predict petrol prices in September and expressed reluctance to allocate government funds for what she believes the market should regulate.
"I am very loath to spend government money on something that the market should be doing."
Government's Approach to Regional Conflict
At PMQs, Sir Keir defended the government's management of the issue, advocating for collaboration with international partners to "de-escalate the situation" in the Middle East.
Badenoch highlighted the Conservative government's previous actions to freeze and cut fuel duty in 2022, emphasizing their concern for the cost of living.
"The Conservatives in government froze fuel duty and also cut it in 2022 because we care about the cost of living."
She reiterated her criticism of Labour's planned fuel duty increase.
Exchange on UK Involvement in Iran
Sir Keir countered Badenoch by pointing out her change in position regarding UK involvement in offensive strikes against Iran, specifically targeting missile launch sites.
MPs Seek Clarity on Fuel Duty Rise
Conservative MP Graham Stuart questioned Sir Keir on whether the fuel duty rise would proceed in September, emphasizing the impact on his constituents in Beverley and Holderness.
"Prime minister, for once in this place give the House and people of this country an answer – yes or no?"
Sir Keir reiterated that no changes to fuel duty will occur before September and assured that the situation in Iran will be carefully monitored.
"In light of what's happening in Iran of course we will look carefully at the situation."
Energy Bill Concerns Addressed
Liberal Democrat leader Sir Ed Davey requested assurances that energy bills would not increase significantly in July.
Sir Keir responded by reassuring households that the energy price cap remains in place until the end of June and that efforts are ongoing to prevent bill increases.
"People will be really worried about the impact on them, and just to reassure households that the cap is in place until the end of June, until July. We are working with the sector and with others, and with allies, to do everything we can to make sure those energy bills don't rise. So, we're working round the clock on that."
