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UK cancels a planned rise in motor fuel tax
The freeze will save the average driver £120 since 2025, while hauliers get a 12-month road tax holiday and red diesel users receive a larger cut.
Chancellor Rachel Reeves announced on Tuesday that the government will cancel the planned 5p fuel duty increase, extending the freeze for the remainder of the year to ease pressure on working people.
Prime Minister Keir Starmer cited the ongoing conflict in Iran as the driver behind rising fuel prices, forcing the administration to intervene and protect household budgets from volatile energy markets.
Hauliers will receive a 12-month road tax holiday, with typical heavy lorries saving £600 and the largest vehicles saving £912 annually, supporting businesses facing record-high operational costs.
During Prime Minister's Questions, Conservative leader Kemi Badenoch questioned why the government allows Russian oil imports while restricting domestic production from Aberdeen amid the energy crisis.
To protect families from future energy shocks, the government is implementing measures to "break the link" between volatile gas prices and electricity costs while accelerating clean energy development.