Starmer Adviser Urges Fuel Duty Cut Extension

Lord Richard Walker, Prime Minister Sir Keir Starmer's adviser on cost-of-living issues and executive chairman of Iceland supermarkets, has called for the government to extend or expand the 5 pence per litre fuel duty cut set to expire in September, as surging oil prices strain UK households and businesses. Speaking on BBC Radio 4's Today programme on Friday, Walker highlighted the impact of the ongoing conflict in the Middle East, where Iran's blockade of the Strait of Hormuz has disrupted global energy supplies.

The 5p reduction in fuel duty was introduced by the previous Conservative government in March 2022 following Russia's invasion of Ukraine, which initially drove up energy costs. Chancellor Rachel Reeves extended the cut until the end of August in her November 2024 budget, with rates then scheduled to gradually return to pre-2022 levels over five years. However, escalating tensions since late February, when the US and Israel launched attacks on Iran, have prompted renewed scrutiny. Iran responded by effectively closing the strait, a vital shipping lane through which about one-fifth of the world's oil and gas flows, causing global wholesale prices to spike.