Tory bid to scrap fuel duty increase defeated in the Commons
A Conservative bid to scrap a planned fuel duty increase amid soaring oil prices following the US-Israel attacks on Iran has been defeated in the Commons.
Shadow transport secretary Richard Holden branded the increase “another egregious tax” as he opened an Opposition Day motion on Wednesday in an effort to block the proposed September rise.
Oil and gas prices have been driven up as Iran has throttled key shipping routes through the Strait of Hormuz, with commercial vessels coming under attack in the region.
The Conservatives’ motion was defeated 103 votes to 259 – majority 156.
Mr Holden branded the increase the “wrong thing to do”, and accused the Government of “choosing to balance the books on the back of working Britain”.
He said: “This House has come together to hear of yet another egregious tax on transport pushed out by this Labour Government at a time when people across the country are worried about the cost of getting around.
“On this occasion, the Government, in its infinite wisdom, has decided that this is a moment, the opportune time, to cancel the fuel duty freeze the last Conservative government kept for 13 years, protecting hard-working people from paying extra to get to work, to have appointments, to visit friends and families.”
Fuel duty has been frozen since 2011, and was temporarily cut by 5p in 2022 in response to Russia’s full-scale invasion of Ukraine.
In her budget last year, Chancellor Rachel Reeves said the 5p cut would be gradually unwound from September.
Mr Holden continued: “Under this Government, on top of the countless tax rises that they’ve already shafted us with, we cannot even get through two years before they decide that the British people need yet another tax rise, and it’s a tax rise in a sneaky and stealthy way.”
Under current plans, fuel duty will rise by 1 pence per litre in September. The current levels are the same as the freeze introduced in March 2022.
He said: “The British people deserve better than underhand taxes swindling them out of the pounds in their pockets, and to pay for that? To pay for more welfare, a tax on every car, every van, every motorbike and every bus.”
Treasury minister Torsten Bell responded that the Government recognises that “fuel costs matter enormously to people right across the country”, and insisted they have “already taken action to ensure that fuel remains affordable”.
“In November’s budget, we extended the temporary 5p per litre cut to fuel duty for a further five months,” he said.
“Additionally, we cancelled the inflation-linked increase plan for 26/27.
“Our fuel duty changes will save the average motorist over £90.”
He added: “This Government will take the necessary decisions to help protect both household finances and public finances.”
“For all the froth from the shadow secretary of state, the truth is the last government didn’t budget for any extension of the 5p cut.
“They said explicitly it was temporary, and on the level of fuel duty, here is the truth: through the entire 14 years in office, it was never lower than it is today. In fact, it was higher than it is today for 80% of the time they were in office.”
Liberal Democrat rural spokesman Tim Farron said the United States needed to resolve the conflict in Iran to allow oil tankers to pass through the Strait of Hormuz.
Mr Farron said: “The Government’s fuel duty rise exacerbates a problem which is created in the White House.
“The United States needs to fix the problem that it created. It cannot be up to others to save it from its failures to think things through.”
