Ed Davey calls for immediate 10p cut to fuel duty

Liberal Democrat leader Ed Davey is urging the government to immediately reduce fuel duty by 10p per litre until Christmas as part of an initiative to alleviate the cost of living crisis. The current freeze on fuel duty since March 2022, under the Conservatives, has been maintained by the current government, delaying a planned 3p increase until the end of the year.

Davey argues that cutting 10p from fuel duty would result in a 12p reduction per litre at the pump. He claims that such a temporary three-month cut would pay for itself by boosting the economy. The policy is projected to cost around £2bn, stating that it will be self-funding due to additional revenue from the energy profits levy, gas taxes, VAT, and fuel duty.

In his speech to the party conference, Davey plans to propose further measures, including lowering the bus fare cap from £3 to £1, cutting rail fares by 10%, eliminating VAT from electric vehicle charging points, and reviewing unfair network costs. Labour Party chair Bridget Phillipson acknowledged the Lib Dems' suggestions but noted that the Labour government has already taken action on fuel duty.