Ed Davey calls for immediate 10p cut to fuel duty

Liberal Democrat leader Sir Ed Davey urged the government to slash fuel duty by 10 p per litre immediately and keep the reduction in place until Christmas, arguing the move would lower pump prices by roughly 12 p per litre and stimulate the economy. He also called for the cancellation of a permanent fuel‑duty rise scheduled for January, adding that a three‑month cut would be self‑financing through higher receipts from the energy profits levy, gas taxes, VAT and fuel duty itself. In his conference speech Davey blamed “Trump’s mad war with Iran” for pushing petrol and diesel prices to multi‑year highs and said drivers need urgent support. The proposal, he claimed, would cost about £2 billion but would pay for itself by boosting economic activity.

The demand for a duty cut comes against a backdrop of recent policy decisions on fuel taxation. The Conservatives froze fuel duty in March 2022, a freeze that Labour’s government under Sir Keir Starmer extended, postponing a planned 3 p increase slated for September until the end of the year. The Lib Dems argue that a temporary 10 p cut would reverse the upward pressure on fuel costs while the government prepares its budget, where Chancellor John Healey faces pressure to either raise taxes or curb spending amid rising borrowing costs. Labour Party chair Bridget Phillipson acknowledged the government’s own fuel‑duty actions but framed the Lib Dems’ call as political posturing ahead of the budget.

Beyond fuel duty, Davey used the conference platform to push a broader cost‑of‑living agenda, proposing a reduction of the bus fare cap from £3 to £1, a 10 % cut to rail fares, the removal of VAT on public electric‑vehicle charging points and a review of what the party calls unfair network costs. He also defended the state‑pension triple lock, rejecting calls from former business secretary Sir Vince Cable to phase it out, and noted that party members were divided on whether the lock should be scrapped if the Lib Dems assume power. The proposals aim to position the Liberal Democrats as a “firewall against Farage” and a radical alternative to the current government, while critics within the party warn of irrelevance if the agenda fails to resonate with voters.

⚡ Effects Interpreter