Starmer Labels Fuel Duty Freeze as an Issue to be Addressed Budget by Budget
Sir Keir Starmer stated that Labour has historically supported the freeze on fuel duty, but did not commit to a future policy on the matter. He also ruled out making changes to council tax bands.
When asked about the prospect of freezing fuel duty, Sir Keir mentioned to GB News that Labour recognizes the significant impact but emphasized that it is a decision made on a budget-by-budget basis. He highlighted the party’s consistent support for the freeze, citing their track record and the purpose behind it.
The current reduction of 5 pence in fuel duty, a temporary relief announced by then-Chancellor Rishi Sunak in response to increased demand and decreased supply, is set to expire in March 2025. This reduction, which has been extended twice, is under review for further extension.
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In terms of council tax, Sir Keir confirmed that there are no plans to reform council tax bands, stating that all proposals are fully accounted for and funded.
‘Working People’
Labour has adopted a cautious approach towards pre-election giveaways, prioritizing fiscal credibility by balancing spending with income. The party aims to support “working people” by ensuring they do not face increased taxes.
Sir Keir defined “working people” as individuals who are employed, often without substantial savings. He pledged to refrain from raising income tax, national insurance, or VAT for this demographic, citing the financial strain they already experience.
He stressed the importance of protecting those who rely on public services and work diligently, highlighting the challenges they face when encountering financial difficulties.
No reform on Council Tax Bands
In England, council tax banding remains unchanged across categories A to H, reflecting property values from April 1, 1991. The allocation of bands is determined locally based on councils’ financial plans.
Despite calls for reform due to outdated property valuations, no changes are currently planned regarding council tax classifications. The party stands by its fully costed and funded proposals.
PA Media contributed to this report.
