Simon Browning
Transport producer

Image source, EPA

The chancellor has chosen not to alter fuel duty, after lots of speculation there would be changes which would see the cost of petrol rise for drivers across the UK.

Reeves said: “To retain the 5p cut and to freeze fuel duty again would cost over £3bn next year. At a time when the fiscal position is so difficult, I have to be frank with the House this is a substantial commitment to make.”

“I have concluded in these difficult circumstances, whilst the cost of living remains high, increasing fuel duty would be the wrong choice for working people. It would mean fuel duty rising by 7p per litre,” she added.

“So I have decided today to freeze fuel duty next year and I will maintain the 5p cut for another year too. There will be no higher taxes at the petrol pumps next year.”

Simon Williams, the head of the RAC motoring organisation, said drivers would breathe an “enormous sigh of relief”.

“Eight-in-10 drivers tell us they are dependent on their vehicles for the journeys they need to make, while 70% of commuters who live in rural areas have no other feasible alternatives to get to work beyond taking the car,” he said.

“It’s also worth remembering that, even as of today, 56% of the total price of a litre of petrol is already tax in the form of fuel duty, and the VAT that is charged on top,” he added.