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UK Government Set to Freeze Fuel Duty Again in Autumn Budget

Chancellor Rachel Reeves says maintaining the freeze will protect households from rising pump prices during the cost-of-living crisis

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Fuel duty looks set to be frozen again in autumn’s Budget to ease the strain on struggling households (Photo: Lewis Whyld/PA Wire)
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Overview

  • Treasury sources indicate fuel duty will remain frozen in the upcoming autumn 2025 Budget to relieve pressure on household finances
  • The freeze sacrifices an estimated £24.4 billion in revenue for 2025–26, averaging about £850 per household
  • More than 100 Labour MPs in the Living Standards Coalition have lobbied to keep fuel duty at current levels
  • The Institute for Fiscal Studies and the Social Market Foundation warn the policy disproportionately benefits wealthier drivers and undermines climate targets
  • Ministers have refused to comment on Budget tax plans and have not yet set a date for the autumn statement