Fuels: Excise Duties
The question
To ask the Chancellor of the Exchequer, with reference to analysis cited in the Road Haulage Association’s 2025 Autumn Budget Submission, what assessment she has made of the potential impact of an increase in fuel duty on household living standards.
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 early 2022 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 has set out estimated impacts on household incomes from tax, welfare and public service spending decisions taken at Budget 2025, including eVED. These impacts are available at GOV.UK: https://assets.publishing.service.gov.uk/media/69269c6222424e25e6bc31bb/Impact_on_households.pdf
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