Despite Labour’s pledge not to raise taxes for “working people,” the AA anticipates a rise in fuel duty later this year, which could increase petrol and diesel prices for millions of drivers.
Before Labour won the general election, the party rejected claims that it would raise taxes on working families. However, Prime Minister Keir Starmer has been evasive about whether he will reverse the five pence cut to fuel duty. This cut, introduced by the previous Conservative government in 2021 as a temporary measure to address the fuel crisis, has been extended by subsequent administrations. Nonetheless, fuel prices reached record highs of 191.5 pence per litre for petrol and 199 pence for diesel in the summer of 2022.
Labour has confirmed that tax increases will be part of the Autumn budget, and the AA suggests that the fuel duty cut might be on the list of potential targets. The AA’s Luke Bosdet sees the fuel duty cut as the “only bit of good news” amidst consistently high fuel prices over the past three years. He warns that reversing this cut could lead to even higher prices, adversely affecting drivers, businesses, and the economy.
Despite the new Transport Secretary’s claim that Labour is “the only party truly on the side of drivers,” the administration has recently canceled several planned road infrastructure projects, focusing more on public transport rather than the needs of motorists.
