Ed Davey calls for immediate 10p cut to fuel duty

Sir Ed Davey has urged the government to act immediately on fuel prices, calling for a 10p-a-litre cut in fuel duty until Christmas as part of a wider plan to reduce the cost of living.

The Liberal Democrat leader is also pressing ministers to abandon a permanent rise in fuel duty that is due to come into force in January.

Fuel duty was frozen by the Conservatives in March 2022, and Sir Keir Starmer's government kept that freeze in place, choosing in May to delay a planned 3p rise in September until the end of this year.

The Lib Dems say that reducing fuel duty by 10p now would lower prices at the pump by 12p per litre.

Sir Ed said motorists should be backed and argued that a temporary three-month cut in fuel duty would pay for itself by boosting the economy.

"Petrol and diesel prices are higher than they've been for a long time because of Trump's mad war with Iran, and people need help now," he said.

He said the measure would cost around £2bn, adding: "It's a three-month package, a temporary package, but if you look at the extra money the government will get through the energy profits levy, from gas taxes, from VAT and fuel duty, it's self-funding."

In a speech to his party's conference on Tuesday, Sir Ed will also call for the bus fare cap to be cut from £3 to £1, and for rail fares to be reduced by 10%.

He will further urge that VAT be removed from public charging points for electric vehicles and that network costs, which the Lib Dems say are unfair, be reviewed.

Chancellor John Healey is facing pressure to raise taxes or reduce spending in next month's Budget, as government borrowing costs continue to climb.

When asked about Sir Ed's fuel duty proposal, Labour Party chair Bridget Phillipson told Laura Kuenssberg: "I'm sure John Healey will be open to any and all suggestions ahead of the budget but actually this is an area where the Labour government has taken action on fuel duty already.

"Whilst I recognise what the Lib Dems have to say on this topic, this is the element of politics about it - they've got their conference, they're making their pitch, good luck to them."