| Fuel tax - freeze, and should it have been frozen in the first place? Posted by grahame at 15:24, 10th March 2026 | ![]() ![]() ![]() |
From the BBC
Calls grow for Reeves to ditch fuel tax hike over Iran
Chancellor Rachel Reeves is facing growing calls from opposition parties to reverse a planned hike to fuel duty as the conflict in the Middle East continues.
The tax rate on petrol and diesel is due to rise from September, when a 5p cut made after Russia's full-scale invasion of Ukraine is set to be phased out.
But Reform UK, the Conservatives and the Lib Dems are all arguing that the war in Iran means the chancellor should keep the cut in place.
Energy prices have risen since the US and Israel began strikes on the country, amid fears the conflict would cause lengthy disruption to supplies.
Chancellor Rachel Reeves is facing growing calls from opposition parties to reverse a planned hike to fuel duty as the conflict in the Middle East continues.
The tax rate on petrol and diesel is due to rise from September, when a 5p cut made after Russia's full-scale invasion of Ukraine is set to be phased out.
But Reform UK, the Conservatives and the Lib Dems are all arguing that the war in Iran means the chancellor should keep the cut in place.
Energy prices have risen since the US and Israel began strikes on the country, amid fears the conflict would cause lengthy disruption to supplies.
The headline rate on standard petrol and diesel is 52.95 pence per litre, which has been frozen since 2011-12, including a "temporary 5p cut" introduced in 2022-23 which is supposed to be being withdrawn later this year. Fuel Duty - £24 billion - £835 per household
For the financial year April 2024 to March 2025, the UK rail industry's income from passenger fares was £11.5 billion (and £12.6 including other sources). Government funding for the UK rail industry in 2024-25 was £11.9 billion, supporting nearly half of the total £25.9 billion in industry income.
52.95 pence in 2011 would be equivalent to 77.89 pence today. If that 25p fuel tax that has been foregone were to have been taken this year and invested in the railways, it would amount to an extra investment / income of around £12 billion. So fares could be halved and £6 billion invested too.
Of course, it gets more complicated; reduced fares and increased investment (if it's done right) will rocket passenger numbers, and passenger numbers will grow; being mass transit, the cost per passenger reduces and you have whole new balance of sustainable public transport becoming the norm. UK electification rates more in line with other counties in Europe? People moving even more rapidly away from fossils fuels? `Inflation stoked by the tax increase and political unrest from those reliant on private cars?
| Re: Fuel tax - freeze, and should it have been frozen in the first place? Posted by TaplowGreen at 15:55, 10th March 2026 | ![]() ![]() ![]() |
From the BBC
The headline rate on standard petrol and diesel is 52.95 pence per litre, which has been frozen since 2011-12, including a "temporary 5p cut" introduced in 2022-23 which is supposed to be being withdrawn later this year. Fuel Duty - £24 billion - £835 per household
For the financial year April 2024 to March 2025, the UK rail industry's income from passenger fares was £11.5 billion (and £12.6 including other sources). Government funding for the UK rail industry in 2024-25 was £11.9 billion, supporting nearly half of the total £25.9 billion in industry income.
52.95 pence in 2011 would be equivalent to 77.89 pence today. If that 25p fuel tax that has been foregone were to have been taken this year and invested in the railways, it would amount to an extra investment / income of around £12 billion. So fares could be halved and £6 billion invested too.
Of course, it gets more complicated; reduced fares and increased investment (if it's done right) will rocket passenger numbers, and passenger numbers will grow; being mass transit, the cost per passenger reduces and you have whole new balance of sustainable public transport becoming the norm. UK electification rates more in line with other counties in Europe? People moving even more rapidly away from fossils fuels? `Inflation stoked by the tax increase and political unrest from those reliant on private cars?
Calls grow for Reeves to ditch fuel tax hike over Iran
Chancellor Rachel Reeves is facing growing calls from opposition parties to reverse a planned hike to fuel duty as the conflict in the Middle East continues.
The tax rate on petrol and diesel is due to rise from September, when a 5p cut made after Russia's full-scale invasion of Ukraine is set to be phased out.
But Reform UK, the Conservatives and the Lib Dems are all arguing that the war in Iran means the chancellor should keep the cut in place.
Energy prices have risen since the US and Israel began strikes on the country, amid fears the conflict would cause lengthy disruption to supplies.
Chancellor Rachel Reeves is facing growing calls from opposition parties to reverse a planned hike to fuel duty as the conflict in the Middle East continues.
The tax rate on petrol and diesel is due to rise from September, when a 5p cut made after Russia's full-scale invasion of Ukraine is set to be phased out.
But Reform UK, the Conservatives and the Lib Dems are all arguing that the war in Iran means the chancellor should keep the cut in place.
Energy prices have risen since the US and Israel began strikes on the country, amid fears the conflict would cause lengthy disruption to supplies.
The headline rate on standard petrol and diesel is 52.95 pence per litre, which has been frozen since 2011-12, including a "temporary 5p cut" introduced in 2022-23 which is supposed to be being withdrawn later this year. Fuel Duty - £24 billion - £835 per household
For the financial year April 2024 to March 2025, the UK rail industry's income from passenger fares was £11.5 billion (and £12.6 including other sources). Government funding for the UK rail industry in 2024-25 was £11.9 billion, supporting nearly half of the total £25.9 billion in industry income.
52.95 pence in 2011 would be equivalent to 77.89 pence today. If that 25p fuel tax that has been foregone were to have been taken this year and invested in the railways, it would amount to an extra investment / income of around £12 billion. So fares could be halved and £6 billion invested too.
Of course, it gets more complicated; reduced fares and increased investment (if it's done right) will rocket passenger numbers, and passenger numbers will grow; being mass transit, the cost per passenger reduces and you have whole new balance of sustainable public transport becoming the norm. UK electification rates more in line with other counties in Europe? People moving even more rapidly away from fossils fuels? `Inflation stoked by the tax increase and political unrest from those reliant on private cars?
Graham this isn't just about people and their private cars
Fuel duty affects manufacturers, distributors, retailers, logistics, haulage and agriculture.
Increase these costs and inflation will rise with them as they are passed on through supply chains to end users, who are quite often already struggling to make ends meet, and it potentially has a devastating impact on an already shaky economy.
Public transport complements road transport - it cannot and will not ever take its place in the way some aspire to, it is simply not living in the real world to suggest otherwise, and politically I think you will find there are far more appealing homes for additional tax revenue than the railway, at least in the proportions you are suggesting.
| Re: Fuel tax - freeze, and should it have been frozen in the first place? Posted by grahame at 16:21, 10th March 2026 | ![]() ![]() ![]() |
Graham this isn't just about people and their private cars
Fuel duty affects manufacturers, distributors, retailers, logistics, haulage and agriculture.
Fuel duty affects manufacturers, distributors, retailers, logistics, haulage and agriculture.
I appreciate that - perhaps a bit more than I made out. I did understand that these is a special "agricultural diesel" rate - "red diesel" at a much lower rate- or is that a thing of the past past?
Increase these costs and inflation will rise with them as they are passed on through supply chains to end users, who are quite often already struggling to make ends meet, and it potentially has a devastating impact on an already shaky economy.
Public transport complements road transport - it cannot and will not ever take its place in the way some aspire to, it is simply not living in the real world to suggest otherwise, and politically I think you will find there are far more appealing homes for additional tax revenue than the railway, at least in the proportions you are suggesting.
Public transport complements road transport - it cannot and will not ever take its place in the way some aspire to, it is simply not living in the real world to suggest otherwise, and politically I think you will find there are far more appealing homes for additional tax revenue than the railway, at least in the proportions you are suggesting.
Yes - and of course some public transport IS road transport
. ... I did a "reductio ad absurdum" exercise and, agreed, it WOULD be absurd to take it all the way! There's is some scope though - and the example a gave at looked at a single year, where in practice investment in one year would reap benefits for many years thereafter.| Re: Fuel tax - freeze, and should it have been frozen in the first place? Posted by Chris from Nailsea at 16:48, 10th March 2026 | ![]() ![]() ![]() |
... I did understand that there is a special "agricultural diesel" rate - "red diesel" at a much lower rate- or is that a thing of the past?
Red diesel is indeed still a feature of the fuel supply - allowed for agriculture, forestry and domestic power (not propulsion) on private narrowboats, for example.
Our local garage used to sell it - from a specific pump, which had a separate key to operate it, and which had to be obtained from the garage office by legitimate users for each transaction. That facility disappeared when our local garage changed hands, and, to be honest, we never had that many tractors (or narrowboats) passing under the railway bridge at Nailsea & Backwell who would have refuelled there.

CfN.

| Re: Fuel tax - freeze, and should it have been frozen in the first place? Posted by TaplowGreen at 17:18, 10th March 2026 | ![]() ![]() ![]() |
Graham this isn't just about people and their private cars
Fuel duty affects manufacturers, distributors, retailers, logistics, haulage and agriculture.
Fuel duty affects manufacturers, distributors, retailers, logistics, haulage and agriculture.
I appreciate that - perhaps a bit more than I made out. I did understand that these is a special "agricultural diesel" rate - "red diesel" at a much lower rate- or is that a thing of the past past?
Increase these costs and inflation will rise with them as they are passed on through supply chains to end users, who are quite often already struggling to make ends meet, and it potentially has a devastating impact on an already shaky economy.
Public transport complements road transport - it cannot and will not ever take its place in the way some aspire to, it is simply not living in the real world to suggest otherwise, and politically I think you will find there are far more appealing homes for additional tax revenue than the railway, at least in the proportions you are suggesting.
Public transport complements road transport - it cannot and will not ever take its place in the way some aspire to, it is simply not living in the real world to suggest otherwise, and politically I think you will find there are far more appealing homes for additional tax revenue than the railway, at least in the proportions you are suggesting.
Yes - and of course some public transport IS road transport
. ... I did a "reductio ad absurdum" exercise and, agreed, it WOULD be absurd to take it all the way! There's is some scope though - and the example a gave at looked at a single year, where in practice investment in one year would reap benefits for many years thereafter.There is scope certainly - but rather like the NHS it isn't necessarily about throwing more money at it, but using the vast amounts already in the system more efficiently.














