Drivers face mandatory £861 charge under Labour with no help offered in Budget
Drivers have cruelly been ignored by Rachel Reeves in the Labour Party Budget with no mention of help with expensive car insurance prices. According to Confused.com, the average price of car insurance is currently £861 as the Cost of Living crisis continues.
Ms Reeves failed to mention any measures to reduce the burden of expensive car insurance prices in the Autumn Statement this afternoon. But Ms Reeves said it would be the “wrong choice” to increase fuel duty next year, saying she would continue the freeze and maintain the temporary 5p cut for another year.
She told MPs she has to “take some very difficult decisions” on tax, and noted to retain the 5p cut and freeze fuel duty again would cost more than £3 billion next year. The Chancellor said: “At a time when the fiscal position is so difficult, I have to be frank with the House that this is a substantial commitment to make.
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“I have concluded that in these difficult circumstances while the cost of living remains high and with a backdrop of global uncertainty increasing fuel duty next year would be the wrong choice for working people. It would mean fuel duty rising by 7p per litre. So, I have today decided to freeze fuel duty next year and I will maintain the existing 5p cut for another year, too. There will be no higher taxes at the petrol pumps next year.”
Gordon Wallis, fuel expert at Your NRG, explains how this decision provides some much-needed relief for millions of motorists. With fuel duty held at 52.95p per litre and the 5p cut extended until 2025, Wallis outlines the benefits for rural communities and working families who rely on their vehicles amid rising costs.
“The decision to freeze fuel duty and maintain the 5p cut until 2025 shows that the government understands the t financial pressures facing UK drivers. Fuel duty currently accounts for 52.95p per litre, and with VAT on top, over 56% of what drivers pay at the pump is tax. Freezing this duty now will save motorists up to £60 per year, which is particularly critical as fuel prices have surged in recent years, reaching record highs of 191.5p per litre in 2022. This relief will allow drivers to better manage their travel expenses," he said.
“Maintaining the fuel duty cut couldn’t come at a more crucial time, especially for the 70% of rural commuters who rely on their cars to get to work. For those living in areas without alternative transport options, driving is often the only viable choice. This measure not only acknowledges the financial realities of these people but also supports economic stability in rural and less accessible regions across the UK.
“This fuel duty freeze demonstrates a balanced approach to fiscal policy that accounts for the needs of everyday citizens. The RAC reports that 8 in 10 UK drivers rely on their vehicles to complete essential journeys, from commuting to family visits and healthcare appointments. For households already facing high living costs, a rise in fuel duty would have been a costly burden. Instead, this freeze helps sustain affordability, preserving access to basic services for millions.
“The choice to extend the 5p duty cut highlights the government’s recognition of the importance of affordability for vehicle-dependent households. In many ways, it’s a necessary step to protect working families, especially as fuel costs remain volatile. With energy prices rising and economic pressures mounting, motorists can now plan their finances with more certainty, knowing that pump prices won’t see a sudden spike from tax hikes.
“Even with the freeze, we need to remember that the UK’s petrol prices remain heavily influenced by tax. Fuel duty alone generates around £28 billion annually for the government, but this decision shows an understanding of the balance needed between tax revenue and household affordability. Given that fuel prices are still recovering from historic highs, extending this freeze provides relief to the economy and individual drivers alike.”