Dear Constituent,
Thank you for getting in touch to share your concerns about the rising cost of fuel. I know from hearing from many constituents that the price at the pump is a concern, particularly as we see global oil markets react so sharply to the ongoing conflict between the US and Iran. Particularly for those in more rural areas, where a car is a necessity for work and school runs rather than a luxury, these global shocks feel like an immediate and unfair penalty on our daily lives.
At Autumn Budget 2025, the Chancellor, Rachel Reeves, introduced a pay-per-mile tax on electric vehicles, which is set to take effect from 2028/29, with an initial rate of 3p per mile that is set to cost the average driver an extra £255 a year. The charge will rise with inflation and is expected to raise £1.9 billion by 2030/31.
On top of this, the Chancellor has announced that from April 2027, the fuel duty freeze, which has been in place for 16 years, will be scrapped along with the 5p cut put in place under the previous Government, and that fuel duty will begin to rise with the Retail Price Index.
In light of the recent instability in the Gulf, I believe the Government’s current plan to hike fuel duty is wrong. It is my firm view that when international factors are already driving prices up, the Treasury should be stepping in to provide a buffer, not adding to the burden. Instead of pressing ahead with plans to scrap the fuel duty freeze or introducing new pay-per-mile taxes, the Chancellor should be using the VAT windfall that comes from higher pump prices to actively reduce the tax burden on motorists.
During the debate on 18 March called by my colleagues in HM Opposition, the Shadow Transport Secretary made it clear that the Government must take practical steps to protect the economy from these energy shocks. That is why we tabled a motion to force the Government to extend the fuel duty relief introduced by the previous Government in order to help consumers cope with increased pump prices. Disappointingly, Labour MPs voted this down.
I agree with my colleague, the shadow Chancellor, Mel Stride, who has said "if you own it, Labour will tax it. It would be wrong for Rachel Reeves to target commuters and car owners in this way just to help fill a black hole she has created in the public finances". My colleagues will continue to hold the Government to account on this matter.
Thank you again for taking the time to contact me.
Yours sincerely,
