Rachel Reeves slammed as Labour's fuel duty hike leaves motorists facing huge September bill

Hemma Visavadia
Tue, 28 Apr 2026 13:55:27 +0000

Rachel Reeves' fuel duty policies have come under fire after millions of motorists face new cost hikes from September, despite fuel shortages and rising prices.

During exchanges in the House of Commons, ministers defended Labour's record, but pointedly refused to rule out a planned rise later this year, fuelling anger from opposition MPs.

Treasury minister Gareth Thomas explained that the Government had already taken action on fuel affordability at the pump.

"At the Budget last year, the Government extended the 5p per litre cut for a further five months, and we've also cancelled the increase that would have otherwise taken place in line with inflation," he said.

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He also noted that fuel duty was lower in 2026 in cash terms than it had been in any year since 2009.

However, critics warned that the real issue is what happens next, with Labour refusing to guarantee that duty will not rise in September.

Shadow Treasury minister James Wild led the attack, warning the plans could hit both households and businesses hard, adding that Labour plans to increase fuel duty by 5p, "costing families £150 a year and hauliers £2,000".

He also aimed at Ms Reeves, adding: "There's no such thing as Government money. There's only taxpayers' money… will she actually help households and businesses and scrap this fuel hike?"

Pressure also came from the SNP, with Westminster leader Stephen Flynn highlighting the impact of high fuel costs in Scotland, accusing the Chancellor of "standing idly by" while countries such as Germany and France intervene to support their economies.

The Government pushed back, with Mr Thomas criticising both the SNP's record in Scotland and the Conservatives' time in power.

He said: "On this side of the House, we are fiscally responsible. We will make sure that we continue to get borrowing down in a sustainable way, as we did over the last financial year, with borrowing falling by £20billion."

The Labour MP for Harrow West also argued that previous Conservative plans would have led to annual fuel duty increases, while Labour has so far kept rates frozen.

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Ministers insisted that, in both cash and real terms, fuel duty remained historically low, claiming it is now below levels seen at any point under the Conservatives and, adjusted for inflation, at its lowest since 1993.

The debate also turned to the future of motoring, with Labour MPs pushing the case for electric vehicles as part of the Zero Emission Vehicle mandate.

Under the plans, new petrol and diesel cars will be banned from 2030, while at least 33 per cent of sales need to be electric by this year.

Mr Thomas pointed to record demand, telling MPs that March saw "more electric vehicles purchased than in any month in British history".

He said the Government has been expanding grants and making it easier for drivers without driveways to access on-street charging, as part of efforts to bring down long-term costs.

Meanwhile, Labour MP Gerald Jones raised concerns about regional price differences, warning that drivers in Merthyr Tydfil are paying around 10p more per litre than those in nearby areas, and even more than some parts of London.

In response, ministers pointed to a new fuel price comparison scheme aimed at boosting competition and helping motorists find cheaper options.