Chancellor Rachel Reeves is reported to be preparing to cancel a planned increase in fuel duty as part of a wider package of measures aimed at reducing the cost of living. According to government sources cited by The Guardian, Reeves will announce this week that fuel duty will not rise by 1p as scheduled for September. The reporting suggests she could instead cancel all or part of a 5p increase that is planned to be implemented in stages over the following six months, maintaining the existing temporary cut.
The Mirror similarly reports that Reeves is set to scrap the fuel duty increase in a major cost of living announcement, indicating the government will retain the current cut rather than allow the scheduled rise to proceed. The Guardian adds that continuing the fuel duty cut is estimated to cost the government around £2.4bn per year.
Overall, the reports describe a shift in timing and scale for fuel duty changes, moving away from the previously planned phased increase and toward extending the temporary relief in order to lower fuel costs for households and businesses.
