Rachel Reeves ‘rakes in nearly £500m’ as UK drivers demand key change

More than 71,000 Brits have called on MPs to scrap an expected fuel duty hike in the Autumn budget as the Lib Dems table a motion to cut the tax. Today's motion will call for an immediate 10p cut to fuel duty, as the Treasury is thought to have raised almost £500million in extra tax revenue since the start of the US-Israel war with Iran, which has driven prices up.

Motorists are bearing the brunt of the fuel crisis, and the Liberal Democrats want Rachel Reeves to use the revenue from the Energy Profits Levy to cut fuel duty to support drivers. It comes as 71,000 campaigners have emailed their MPs on the back of a FairFuelUK campaign, which not only asks for tax to remain frozen in the next Budget, but for fuel tax to be slashed now.

According to FairFuelUK, intensive lobbying has resulted in the hike being scrapped, though it will likely be reinstated in the March 2027 Financial Statement.

Campaigners raged that oil company profits were soaring "at the motorist's expense", yet the Chancellor "continues to ignore their plight" while other countries stepped in to help reduce their drivers' fuel costs. A HM Treasury spokesperson said Government was determined to keep prices down for motorists.

Howard Cox, Founder of FairFuelUK, said: "This clueless, bankrupting net-zero-driven Government remains stuck in a state of torpor, keeping the UK economy virtually stagnant.

"Time and again, over 16 years of campaigning, we have shown that lower fill-up costs deliver more tax to the Treasury by boosting other tax revenue streams.

"More to the point, the current cost of petrol, particularly diesel, is crippling motorists' and small businesses’ ability to spend in the economy.

"When will these ignorant Treasury politicians understand that more money in people’s pockets drives growth? For goodness sake, cut all fuel taxes now!"

The group has also launched a petition which has gained more than 148,000 signatures and will be delivered to the Treasury.

Analysts previously estimated the Treasury would receive a huge £8billion boost in earnings thanks to the tax on North Sea oil and gas, as escalating Middle East conflicts push energy costs higher.

Conducted for The Times, analysts said the huge revenue increase would materialise if current elevated fuel prices persist over the year.

A HM Treasury spokesperson said: "Motorists are paying more at the pumps because of the war in Iran. This is not our war and we did not join it.

"We are determined to keep costs down for motorists - that's why we have extended the 5p fuel duty cut twice until September and urge for de-escalation.”