Chancellor protects drivers and businesses from rising fuel costs
The Government has announced a support package for motorists.
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Costs lower for millions of drivers as government holds pump prices down,听extending the听5p听fuel duty听cut听until听the听end of year听听
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Hauliers get a 12-month road tax holiday saving up to 拢912听per听vehicle,听听red听diesel slashed to its lowest rate in over 20 years听until the end听of the year听
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Chancellor keeps taxes down听for drivers听after听strong听growth听at the start of the year,听showing听government has right economic plan.听听
Britain鈥檚 motorists and businesses will get help with rising prices at the pumps听with听a targeted package to听keep听taxes down and听support people听with听the impact of war in Iran.听
The听Government听听has听today (May 20) announced,听the听5p听cut听on听fuel duty听will听be extended听for the rest of the year.听
In total,听by the end of this year听the听cut听will听have听saved听the听average driver听拢120听since听2025.听This ensures fuel duty on petrol and diesel听remains听at its lowest rate for over 16 years.听
The conflict has also pushed up costs for hauliers who keep Britain鈥檚 shelves stocked and its economy moving. The Chancellor is giving them a 12-month road tax holiday 鈥� meaning they will pay 拢1 at renewal, saving 拢600听for a typical heavy lorry and 拢912听for the biggest vehicles on the road.听
Farmers, rail freight, and other red diesel users will also see their fuel duty cut by over a third until the end of the year. This is the lowest rate in over 20 years, helping to keep the cost of doing business down at听a difficult time听when red diesel prices are around 50% more than their pre-crisis听levels.听
Since the start of the Iran conflict, the government has been clear that it will not make kneejerk decisions that听could听impact听on financial stability. The package of support brought forward is听timely听and targeted.听听
Prime Minister Keir Starmer said:听听
I know many are feeling the pressure of energy and fuel听costs, and听are worried about how the conflict in Iran will affect their finances. Because when global events drive up prices,听it鈥檚听working people who feel it first.听
That鈥檚 why听this government is听stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people.
Chancellor of the Exchequer Rachel Reeves said:听
I鈥檓 keeping taxes down for drivers and businesses 鈥� putting money in the pockets of millions of workers听and cutting costs for farmers and hauliers.听听
The war in Iran听is pushing up听fuel听prices听here at home听but after听strong growth听at the beginning of the year, I听am stepping in to听protect people at the pump听
By protecting households and businesses we are building a stronger and more secure economy for Britain. That is the right economic plan.