A prominent think tank has called on the UK government to cut fuel duty by 10p per litre until spring 2027 as part of a broader strategy to protect households from rising costs linked to the conflict in Iran. The Institute for Public Policy Research (IPPR) recommends additional measures, including capping speed limits and introducing a new energy price cap set at £2,000 annually, to mitigate the impact on consumers.
William Ellis, a senior economist at IPPR, emphasized the urgency: “The UK cannot afford to sit back and let another energy shock drive up inflation and damage the economy.” He highlighted the expected significant toll on the UK’s economy and public finances stemming from the Iran conflict, regardless of government intervention.
In response, a Treasury spokesperson reaffirmed the government’s commitment to de-escalation, stating: “This is not our war and that is why we did not join it. Our priority is de-escalation. We are reducing debt and borrowing while supporting families and businesses through this crisis.”
The government noted several support measures already in place, including extending the existing 5p fuel duty cut until September, reducing the energy price cap by £117, increasing pay for millions of workers, and freezing rail fares and prescription charges.
Labour Party Chancellor Rachel Reeves acknowledged public concerns about rising costs amid global uncertainty. Speaking to The Sun, she said, “People are struggling… I will do everything in my power to protect them. Working people deserve a Chancellor who listens and acts. I am doing both.”
As the UK braces for the economic repercussions of global conflict, the call for a comprehensive fuel duty cut and energy price reforms reflects ongoing efforts to ease the pressure on households nationwide.