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UK cancels a planned rise in motor fuel tax
The package will save a typical heavy lorry £600 and keep fuel duty at its current 5p cut until year-end, Treasury said.
On Wednesday, Prime Minister Sir Keir Starmer cancelled the planned September fuel duty increase, extending the 5p-per-litre cut through year-end to keep the rate at nearly 53p per litre.
Restrictions on tankers in the Strait of Hormuz since February 28 drove the intervention; petrol prices rose 26p and diesel 44p, forcing the government to act amid Middle East instability.
Hauliers receive a 12-month road tax holiday saving up to £912 per vehicle; the government estimates the total support package costs £455 million.
Labeling the decision a "U-turn," Conservative leader Kemi Badenoch thanked Starmer, claiming the original plan would have "hammered hardworking families" already under pressure.
Chancellor Rachel Reeves is expected to outline long-term plans in the autumn Budget, though it remains unclear if the 5p freeze will extend beyond 2026.