Sir Keir Starmer hinted at the possibility of maintaining the freeze on fuel duty but stopped short of making a firm commitment, citing the issue as one that is decided on a budget-by-budget basis. Speaking to GB News, he emphasized Labour’s historical support for freezing fuel duty, stating that it has always been a priority for the party.
However, Sir Keir did not confirm whether the current 5-pence reduction on fuel duty would be extended further, which is due to expire next year. The UK’s fuel duty has remained at 57.95 pence a litre for petrol and diesel since 2011, with the previous practice of increasing it in line with inflation being halted.
In response to concerns about the potential impact of ending the 5-pence reduction, the Office for Budget Responsibility forecasts an increase in revenue from fuel duty by £2.5 billion when the cut ends in 2025/26.
Labour has taken a cautious approach to pre-election promises, focusing on maintaining fiscal credibility by balancing spending with income. The party has pledged not to raise taxes for “working people,” whom Sir Keir described as those who work for a living and may not have significant savings to fall back on in times of financial difficulty.
Regarding council tax, Sir Keir ruled out reforming council tax bands, stating that all Labour’s plans are fully costed and funded. Council tax banding in England is based on property values from 1991 and set locally by councils based on their revenue and spending needs.
Despite criticisms of the outdated nature of council tax banding, with property values from over three decades ago still being used, former Labour MP Luciana Berger defended the system, noting that there are opportunities for individuals to challenge their banding successfully.
Overall, Sir Keir’s approach to fuel duty and council tax reflects Labour’s commitment to financial responsibility and supporting working people, while also acknowledging the need for ongoing evaluation of tax policies in line with changing economic circumstances.
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