Liberal Democrat leader Sir Ed Davey has proposed a temporary 10p-per-litre reduction in fuel duty, intended to remain in effect until Christmas. The party estimates this measure would result in a 12p-per-litre decrease at the pump, providing immediate relief to drivers facing high petrol and diesel costs.
Sir Ed argued that the £2bn policy would be self-funding, citing increased government revenue from VAT, fuel duty, and energy profits levies. He characterized the proposal as a necessary intervention to support the public during a period of economic strain. Additionally, the Liberal Democrats are calling for the cancellation of a scheduled fuel duty increase currently slated for January.
Beyond fuel costs, Sir Ed outlined plans to reduce the national bus fare cap from £3 to £1 and implement a 10% reduction in rail fares. He also advocated for the removal of VAT on public electric vehicle charging stations. These proposals are expected to be central themes during the party's conference.
In response to the proposal, Labour Party chair Bridget Phillipson noted that while the government remains open to suggestions ahead of the upcoming budget, the current administration has already taken steps to maintain the fuel duty freeze. Meanwhile, Sir Ed addressed internal party discussions regarding the state pension triple lock, confirming his commitment to the policy despite concerns from some party members about its long-term fiscal sustainability.
Source: BBC News
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