Rachel Reeves has just delivered one of the most baffling financial statements any Chancellor has ever delivered. It’s clear Labour no longer cares about drivers. If they ever did.
Every man and his dog is aware of the conflict in the Middle East and the backlash it’s likely to have on global oil and fuel prices. The AA has tipped petrol and diesel costs to rise in 10 to 12 days, with the RAC suggesting petrol pump charges could jump by 18p per litre to hit 150 pence. As boats sit in the Strait of Hormuz and drivers pile into petrol stations, panic buying fuel, the Chancellor has instead decided to bury her head in the sand and carry on praising the Government’s actions.
Labour is clearly standing by its plan to cut the 5p fuel duty cut, with the first reversal planned for September 2026. Has the Chancellor even seen the news? The Conservatives introduced the 5p cut in 2022 at a time of uncertainty following a hike in petrol costs after Russia invaded Ukraine. So is another time of international crisis really the right time to increase costs?
The Office for Budget Responsibility (OBR) claimed fuel duty receipts will increase by £0.4 billion in 2026- 27. Classic Labour, more tax for them as they watch drivers dipping into their wallets. The Spring statement wasn't expected to come with a series of major announcements; Reeves did the same thing last year after all.
Labour are keen to ensure it won't make any major tax or spending policies during the spring statements, instead reserving these for one big fiscal event in the Autumn. But, leaders are supposed to take quick, decisive actions in the national interest. Will rising fuel fees help drivers already struggling with the cost-of-living? No, it's probably going to make it worse.
Campaigners had called for changes, with FairFuelUK warning that Reeves needed to announce fuel duty would remain “for the lifetime of her Parliament". That definitely didn't happen. It’s not just Reeves who seems to be struggling, with Chief Secretary to the Treasury James Murray claiming the UK needs to be less energy dependent and more energy secure.
He revealed how developments in wind energy and nuclear will one day help the UK stop relying on international powers for its energy costs.
How about the oil reserves under the North Sea? Are Labour completely blind? The answer to their crisis might be staring them right in the face? If Labour’s energy policy had been to “drill baby drill”, there would be a much reduced threat to petrol and diesel prices at home.
Instead, the Government has slammed the domestic oil industry, banning new licenses in the North Sea and increasing the Energy Profits Levy taxes. The Conservatives have called for taxes to be cut, but that isn’t in Labour’s dictionary so that is unlikely to happen.
Apparently, Reeves will meet North Sea bosses on Wednesday. Is she going there with her tail between her legs? Or more likely, will she double down on Labour’s stance to the detriment of ordinary road users.
Labour keeps repeating that they have the right plan for Britain. Will the UK’s 42million motorists feel when they have their wallets raided at the fuel pumps come the end of March?
