shelve September – Chancellor Rachel Reeves is set to consider shelving a planned rise in 5p fuel duty for September as pump prices edge higher, with ministers pointing to the wider impact of the Middle East crisis and renewed threats against Iran.
Rachel Reeves is preparing to make a rapid U-turn on motorists’ bills, with a 5p fuel duty hike due for September looking increasingly likely to be shelved as pump prices head towards fresh peaks.
Brent Crude has climbed again to around $110 a barrel after Donald Trump renewed threats against Iran. while the Strait of Hormuz — through which around a fifth of global oil supplies normally pass — remains effectively shut.. The RAC says the average petrol price has crept up to 158.24p today, with diesel at 186.15p.
The Treasury has not denied an announcement is imminent.. A Downing Street spokesperson said: “We are determined to keep costs down for motorists who are paying more because of the war in Iran.. That’s why we extended the 5p fuel duty cut twice. until September. and why we will continue to monitor the situation.” The spokesman added that “We we will also take the necessary decisions to help families with the cost of living and protect the public finances.”
Reeves, who was in Paris today for meetings with G7 counterparts, is also dealing with economic warnings closer to home.. The IMF has upgraded dismal forecasts for the UK economy, but warned of an inflation spike.. She was photographed standing some distance from US Treasury Secretary Scott Bessent, after a bruising confrontation in Washington recently.
At Westminster. the fuel duty pressure is arriving as Labour’s internal battle over replacing Andy Burnham deepens. with a crucial Commons by-election battle officially kicked off.. Burnham’s allies have accused rivals of sabotage after leadership contender Wes Streeting voiced support for rejoining the EU. a stance that drew criticism from those who see Burnham’s own Brexit reversal views as complicated — and potentially damaging — in a Eurosceptic seat of Makerfield. where he is also fighting Reform.
With the contest likely to be on June 18, the party’s nerves are plain: even some supporters of Burnham say his odds could be worse than 50-50, with polls consistently showing Nigel Farage’s outfit on track to win.
Sir Keir visited Labour HQ this morning to thank staff. insisting he would “get on with the job” and pledging to back whichever candidate is fighting Reform at the by-election.. Deputy PM David Lammy acknowledged “internecine warfare” after disastrous local elections. calling it a “spectacular own goal” and warning that “Some colleagues are lighting the match and standing in the petrol.” He said a general election could become inevitable if the party does not pull together.
Lammy, though, refused five times to say whether he personally wanted to rejoin the EU.
Backbenchers and ministers have not held back.. Jonathan Hinder said the push to unwind Brexit showed a “staggering level of out of touch”.. One despairing minister told the Daily Mail: “Day one has gone well but it’ll be downhill from here on in.” Another senior Labour source said the complaint amounted to “Wes is doing politics and I’m upset about it”.. The response included: “Welcome to Westminster, Andy.. It’s not all free money and buses with bees on. ” while a former minister dismissed Burnham’s judgement as: “Burnham has the political sense of a gnat.”
Later, the dispute over Brexit sits alongside a separate political tension: despite the race to replace Burnham being in full swing, Sir Keir is not expected to concede he will have to quit or set out a timetable. Instead, the premier will wait to see whether Burnham can get back into the Commons.
The link between the overseas shock and the domestic fight is tight: renewed threats against Iran drive Brent crude to around $110 a barrel. the Strait of Hormuz remains effectively shut. and the RAC reports petrol at 158.24p and diesel at 186.15p. while the PM’s spokesman points to the war’s effect on motorists as the reason the 5p fuel duty cut has already been extended twice until September.
If Reeves does confirm changes as soon as Thursday, it would land against a backdrop of heightened political risk for Labour, as ministers try to frame decisions around keeping costs down while MPs and contenders trade accusations ahead of the by-election.
Rachel Reeves fuel duty 5p fuel duty cut pump prices Brent crude Strait of Hormuz Iran Middle East crisis RAC Labour civil war Andy Burnham Wes Streeting Makerfield Commons by-election June 18 Keir Starmer David Lammy Scott Bessent IMF