Stories

Tue, 10 Mar 2026

Tue, 10 Mar 2026 Calls grow for Reeves to ditch fuel tax hike over Iran

Reform UK has set out further detail of how it would cover the cost of scrapping September's planned rise.

* Opposition parties, including Reform UK, Conservatives, and Lib Dems, are calling on Chancellor Rachel Reeves to reverse the planned hike in fuel duty due to the ongoing conflict in the Middle East.
* The tax rate on petrol and diesel is set to rise from September, phasing out a 5p cut made after Russia's invasion of Ukraine.
* Energy prices have risen since the US and Israel began strikes on Iran, with fears of disruption to supplies.
* Reform UK has proposed cuts to green levies to cover the cost of keeping fuel duty low, including scrapping government grants for heat pumps and electric cars.
* The Conservatives have published a motion to trigger a future vote on the issue.
* Chancellor Reeves says the "most important thing" ministers can do is help "de-escalate" the conflict, but has hinted at raising the tax-free mileage allowance in the future.
* The 5p cut was originally announced by Rishi Sunak in 2022 and has been extended several times since then.
* Labour's restrictions on new oil and gas exploration in the North Sea have also come under criticism from Reform UK leader Nigel Farage.