Reeves, UK's Reeves, announces that fuel duty will not increase

In her first budget address on Wednesday, British Finance Minister Rachel Reeves announced that the temporary five-pence reduction in fuel duty will remain in effect. She said it would be unfair to increase it in a period of global uncertainty and high living costs.

"I have decided today to freeze fuel duties next year... and I will also maintain the current 5p reduction for another year." Reeves, Reeves's deputy in the House of Commons, said that there would be no increase in fuel taxes next year.

Since 2011, the duty paid on motor fuels was frozen, except for a short-term cut in 2022/23, because governments were afraid of a backlash if they decided to raise it again in line with inflation. This is especially true among rural drivers.

The cancellation of the planned fuel duty increase was estimated in the last budget published by the Conservative government in March to cost the Treasury approximately 3 billion pounds for the financial year 2024/25.

Fuel duty rates for petrol and diesel are 52.95 pence a litre, including the five-penny reduction. (Reporting and writing by David Milliken, Sachin Ravikumar, Michael Holden. Editing by Hugh Lawson).

(source: Reuters)