Ed Davey calls for immediate 10p cut to fuel duty

Sir Ed Davey has urged the government to immediately cut fuel duty by 10p a litre until Christmas, framing the move as part of a broader set of policies designed to lower the cost of living. The Liberal Democrat leader also called for the cancellation of a planned permanent increase in fuel duty that is scheduled to take effect in January. Fuel duty has remained frozen since March 2022 under the Conservatives, and Sir Keir Starmer’s administration continued that freeze, opting in May to delay a scheduled 3p rise for September until the end of this year. According to the Lib Dems, a 10p reduction in fuel duty would translate to a 12p‑per‑litre drop at the pump. Sir Ed argued that drivers deserve support and that a temporary three‑month cut would pay for itself by stimulating economic activity. He said, “Petrol and diesel prices are higher than they've been for a long clip because of Trump's huffy warfare with Iran, and radical request assistance now.” The proposal would cost roughly £2bn, he added, noting, “It's a three-month package, a temporary package, but if you look at the other wealth the authorities will get done the energy profits levy, from fuel taxes, from VAT and fuel duty, it's self‑funding.” In a speech to his party’s conference on Tuesday, Sir Ed will also press for the bus fare cap to be lowered from £3 to £1 and for obstruction fares to be trimmed by 10%. He will further call for VAT to be removed from national charging points for electric vehicles and demand a review of network costs that the Lib Dems describe as unfair. Chancellor John Healey faces pressure to raise taxes or reduce spending at his upcoming Budget next month, amid rising government borrowing costs. When questioned about Sir Ed’s fuel‑duty cut, Labour Party chair Bridget Phillipson told Laura Kuenssberg, “I'm sure John Healey will be open to any and all suggestions ahead of the budget but really this is an area where the Labour government has taken action on fuel duty already.” She added, “Whilst I recognise what the Lib Dems have to say on this topic, this is the point of government about it - they've got their conference, they're making their pitch, good luck to them.”