Reeves faces pressure to lower fuel duty as petrol prices rise due to Middle East crisis, with Brent Crude close to $110 per barrel and a significant energy supply disruption.
Rachel Reeves is poised to drop plans to hike fuel duty as Brits brace for more 'Trumpflation' pain. The Chancellor could announce as soon as Thursday that the increase slated for September is not happening.
Pressure has been mounting on the Government to say how it will help families with the looming impact from the Middle East crisis. Brent Crude has surged again to around $110 a barrel after Donald Trump renewed his threats against Iran. The Strait of Hormuz - through which around a fifth of global oil supplies normally pass - remains effectively shut.
The RAC said the average petrol price had crept up to 158.24p today, with diesel 186.15p. The levels are expected to reach new highs since the crisis erupted later this week, as oil costs are fed through to drivers. Chancellor Rachel Reeves could announce as soon as Thursday that the increase slated for September is not happening. The Treasury did not deny an announcement is imminent.
The PM's spokesman said: 'We are determined to keep costs down for motorists who are paying more because of the war in Iran. That's why we extended the 5p fuel duty cut twice, until September, and why we will continue to monitor the situation.
"As the Chancellor has set out, a rapid de-escalation in the Middle East remains the best way to keep pump prices low. We will also take the necessary decisions to help families with the cost of living and protect the public finances.
" Ms Reeves was in Paris today for meetings with G7 counterparts, as the IMF upgraded dismal forecasts for the UK economy - but warned of an inflation spike. The Chancellor was pictured standing some distance from US Treasury Secretary Scott Bessent, with whom she had a bruising confrontation in Washington recently. Ministers have been stressing they are focused on the cost of living timebomb despite Labour descending deeper into civil war.
A crucial Commons byelection battle has officially kicked off with Andy Burnham's allies accusing rivals of sabotage. Supporters of the Greater Manchester mayor lashed out after leadership contender Wes Streeting voiced support for rejoining the EU. That highlighted Mr Burnham's own strident views on reversing Brexit – seen as deeply unhelpful when he is wrestling Reform in the Eurosceptic seat of Makerfield. Victory would be a springboard to taking over from Keir Starmer.
The spat came amid rising anxiety in Labour ranks at the consequences if the contest – likely to be on June 18 – is lost. Even fans of Mr Burnham say his chances of success could be worse than 50-50, with polls having consistently shown Nigel Farage's outfit on track to win. Sir Keir visited Labour HQ this morning to thank staff for their hard work, insisting he would 'get on with the job'.
He pledged to support whatever candidate is fighting Reform at the byelection. Deputy PM David Lammy acknowledged that the 'internecine warfare' after disastrous local elections was a 'spectacular own goal'.
'Some colleagues are lighting the match and standing in the petrol,' he warned, hinting that a general election could be inevitable if the party does not pull together. But Mr Lammy refused five times to say whether he personally wanted to rejoin the EU. Ms Reeves was in Paris today for meetings with G7 counterparts, as the IMF upgraded dismal forecasts for the UK economy - but warned of an inflation spike.
Backbencher Jonathan Hinder said the call to unwind Brexit showed a 'staggering level of out of touch'. One despairing minister told the Daily Mail: 'Day one has gone well but it'll be downhill from here on in.
" Another senior Labour source said the complaint amounted to 'Wes is doing politics and I'm upset about it'. 'Welcome to Westminster, Andy. It's not all free money and buses with bees on,' they added. A former minister said: 'Burnham has the political sense of a gnat.
' Despite the race to replace him being in full swing, Sir Keir is not expected to concede he will have to quit or set out a timetable. Instead, the premier will wait to see whether Mr Burnham can get back into the Commons
Refinery Production Crisis Brent Crude Middle East Crisis Iran Threat Iran-US Tensions Strait Of Hormuz Petrol Prices Migrant Crisis Economy Forecasts Fuel Duty Hike Labour Civil War
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Reeves' Fuel Tax Hike Would Make UK Drivers the Most Taxed in EuropeA study found that millions of UK diesel drivers pay an average 85p a litre in tax at the pumps, making them the second-highest taxed among all European countries. However, this would increase to 91p a litre after the Chancellor's fuel duty hike kicks in, making the UK drivers the most clobbered in Europe. For petrol, the UK drivers are currently the 12th-highest taxed but this would leap to eighth-highest after the hike. The article also mentions the VAT windfall and the pressure put on the Chancellor to remove the hated 5p fuel duty rise.
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Reeves' Fuel Tax Hike Would Make UK Drivers the Most Taxed in EuropeA study found that millions of UK diesel drivers pay an average 85p a litre in tax at the pumps, making them the second-highest taxed among all European countries. However, this would increase to 91p a litre after the Chancellor's fuel duty hike kicks in, making the UK drivers the most clobbered in Europe. For petrol, the UK drivers are currently the 12th-highest taxed but this would leap to eighth-highest after the hike. The analysis also revealed that nearly £500 million extra VAT windfall Ms Reeves has racked in thanks to high pump price has piled pressure on her to abandon her fuel hike and use the financial gain to help pay for it.
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