Reeves to Cancel Fuel Duty Rise Amid Cost Crisis

Key Measures to Tackle Inflation

Chancellor Rachel Reeves is poised to announce a significant decision to cancel a planned rise in fuel duty, which was set to take effect in September. This move comes as part of a broader strategy to alleviate the financial burden on UK citizens amid rising inflation linked to the ongoing conflict in Iran.

The government has faced mounting pressure to extend the temporary 5p fuel duty cut, initially introduced in response to the economic fallout from Russia's invasion of Ukraine. With an estimated cost of £2.4 billion annually, Reeves is exploring various options to keep prices manageable for consumers, including:

• Freezing private sector rents
• Subsidizing energy bills for vulnerable households

While some measures are still under consideration, the chancellor is expected to reveal her comprehensive plan in the Commons on Thursday, aiming to provide relief to motorists and households alike. The government's commitment to monitoring the situation reflects the urgency of addressing these economic challenges.