Fuels: Excise Duties
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the impact of fuel duty rates on (a) households that rely on vehicles for work, or in areas with limited public transport, and (b) small businesses, the logistics sector and supply chains.
Answered by Dan Tomlinson
At Budget 2025, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut until the end of August 2026. Rates will then gradually return to previous levels. The planned increase in line with inflation for 2026-27 will not take place, with the government uprating fuel duty rates by RPI from April 2027. This will save the average car driver £49 next year compared to previous plans.
The Government considers the impact of fuel duty on the economy, including households and businesses, with decisions on rates made at fiscal events.
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