Liberal Democrats Propose Fuel Duty Cut to Ease Cost of Living Crisis

Liberal Democrat leader Sir Ed Davey has urged the government to implement an immediate 10p per litre cut to fuel duty, lasting until Christmas, as part of a broader strategy to alleviate the rising cost of living. Davey also called for the cancellation of a planned 3p per litre increase in fuel duty slated for January.

The party claims that a 10p cut would translate to a 12p reduction at the pump for consumers. Sir Ed argued that drivers require immediate assistance and suggested that a temporary three-month reduction in fuel duty would be economically stimulating and self-funding. He estimated the policy's cost at approximately £2 billion, asserting that increased government revenue from the energy profits levy, gas taxes, VAT, and fuel duty would offset this expenditure. Davey attributed current high petrol and diesel prices partly to global events.

In addition to the fuel duty proposal, Davey plans to advocate for further cost-saving measures at his party's conference. These include reducing the bus fare cap from £3 to £1 and implementing a 10% cut in rail fares. The Liberal Democrats also propose removing VAT from public electric vehicle charging points and reviewing network costs they deem unfair.

When questioned about Davey's proposal, Labour Party chair Bridget Phillipson acknowledged that Chancellor John Healey would consider various suggestions ahead of the budget. However, she highlighted that the Labour government has already taken action on fuel duty and characterized the Liberal Democrats' proposals as a political pitch during their party conference.