Keir Starmer's cost-of-living adviser has urged the government to extend the existing 5p fuel duty cut, warning that rising costs linked to conflict in the Middle East make it necessary to provide continued relief to British households and businesses.
Lord Walker, who serves as an adviser to the Prime Minister on cost-of-living matters, suggested that the reduction should remain in place given the financial pressures being felt across the country as a result of instability in the region. The ongoing situation in the Middle East has contributed to volatility in global oil markets, which in turn affects fuel prices at the pump for consumers in the United Kingdom.
Fuel duty has long been a contentious issue in British politics, with motoring groups and industry bodies regularly lobbying governments to keep costs down. The 5p per litre cut was originally introduced by the Conservative government in 2022 as a temporary measure to ease the burden on drivers during a period of sharply rising energy costs.
The recommendation from Lord Walker puts pressure on the government to consider the financial strain still facing millions of people across the country. Fuel costs have a significant knock-on effect for the wider economy, influencing the price of goods and services that depend on road transport and logistics.
Any decision on fuel duty will ultimately rest with the Treasury, and Chancellor Rachel Reeves will face competing pressures as she weighs the cost of maintaining the cut against the need to stabilise public finances. The government has already signalled that difficult decisions lie ahead in its efforts to address a challenging fiscal environment.
The intervention by Lord Walker underscores the continuing pressure on the Labour administration to demonstrate that it takes the cost-of-living crisis seriously. While inflation has eased compared to its peak in recent years, many households continue to feel the pinch when it comes to everyday expenses including travel and energy.
