What happened: Rachel Reeves is expected to cancel the scheduled 1p fuel duty increase in September and may also scrap a planned 5p rise over the following six months. This move aims to help reduce the financial pressure on households.
Why it matters:
- It could lower fuel costs for drivers, easing expenses amid rising living costs.
- The government faces an estimated £2.4bn annual cost from extending the temporary fuel duty cut.
MNN Take: Cancelling the fuel duty rise is a direct measure to support consumers struggling with inflation, though it will have significant budget implications for the government.
Sources: Guardian UK