Ed Davey calls for immediate 10p cut to fuel duty

Sir Ed Davey, leader of the Liberal Democrats, is urging the government to implement an immediate 10p per litre cut in fuel duty lasting until Christmas. This proposal forms part of a broader set of measures aimed at alleviating the cost of living pressures facing many households. Alongside this temporary reduction, Sir Ed is also pressing for the cancellation of a permanent fuel duty increase scheduled to come into effect in January.

Fuel duty has been under a freeze since March 2022, initially imposed by the Conservative government and subsequently maintained by Sir Keir Starmer’s administration. In May, the government decided to delay a planned 3p increase, originally set for September, extending the freeze through the end of the year. According to the Liberal Democrats, slashing fuel duty by 10p now would translate into a 12p per litre decrease for fuel prices at the pump, offering immediate relief to motorists.

Sir Ed argues that this short-term reduction would support drivers and, despite the initial cost of around £2 billion, would ultimately pay for itself by boosting economic activity. He stated, “Petrol and diesel prices are higher than they’ve been for a long time because of Trump’s mad war with Iran, and people need help now.” He also noted the potential for the government to recoup funds through increased revenues from the energy profits levy, gas taxes, VAT, and fuel duty itself, describing the plan as “self-funding.”

In addition to the fuel duty cut, Sir Ed plans to announce further initiatives during his party’s conference, including calls to reduce the bus fare cap from £3 to £1 and cut rail fares by 10%. He will also advocate for the removal of VAT on public electric vehicle charging points and a review of network costs, which the Liberal Democrats consider to be unfair. Meanwhile, Chancellor John Healey faces growing pressure to either raise taxes or reduce government spending in the upcoming Budget amidst rising borrowing costs. Responding to Sir Ed’s proposal, Labour Party chair Bridget Phillipson acknowledged past government action on fuel duty and remarked, “I’m sure John Healey will be open to any and all suggestions ahead of the budget but actually this is an area where the Labour government has taken action on fuel duty already… Whilst I recognise what the Lib Dems have to say on this topic, this is the element of politics about it – they’ve got their conference, they’re making their pitch, good luck to them.

Read the full article from The BBC here: Read More