Oral Answers to Questions

Greg Smith Excerpts

Tuesday 8th September 2026 Commons Chamber

[Christine Jardine (Edinburgh West) (LD)]

6. What assessment he has made of the potential impact of reducing fuel duty on the cost of living for working families.

[Greg Smith (Mid Buckinghamshire) (Con)]

22. What estimate he has made of the average annual cost to motorists of discontinuing the 5p fuel duty reduction from December 2026.

[The Financial Secretary to the Treasury and Paymaster General (James Murray)]

As part of the £600 million package the Government announced in May, there will be no rise in fuel duty this year. This means that the temporary 5p cut will be extended till the end of the year, providing certainty to motorists. In total, the decisions taken since the 2024 general election to freeze fuel duty save motorists 11p per litre, or £120 per year for the average car, compared with the plans inherited from the previous Government.

--- Later in debate ---

[Greg Smith]

I cannot believe the Minister just said he wanted to give families breathing space when the RAC Foundation has found that, since fuel prices increased due to international issues earlier this year, the Treasury has raked in £1 billion extra from the VAT on fuel. How can it possibly be fair on motorists or give them any breathing space whatsoever to carry on with another fuel duty hike in January?

[James Murray]

The hon. Gentleman is right to point to the fact that international events have an impact on prices here at home. We did not want to get involved in that conflict, unlike the Conservative party. None the less, we are impacted by it, and the right thing for us to do as a Government is to make sure we are providing breathing space for families as we weather international events.