Sir Ed Davey has called for an immediate 10p per litre reduction in fuel duty to ease the financial pressure on motorists ahead of the winter months. The Liberal Democrat leader proposed the emergency measure during his party’s conference in Brighton, suggesting the cut should remain in place for a fixed three-month period until Christmas.
The proposal comes as fuel prices face upward pressure from global oil markets. Sir Ed attributed the rising costs to international instability, specifically blaming Donald Trump’s war with Iran.
Under the Liberal Democrat plan, the 10p reduction in duty would translate to a 12p saving for drivers at the pumps once the 20% VAT rate is factored in. The demand follows a recent 1p increase in fuel duty which took effect on 1 September 2026, bringing the current main rate to 53.95p per litre.
Broad transport fare reductions
The fuel duty cut forms part of a wider “emergency transport package” designed to lower the cost of travel across multiple sectors. In addition to the relief for petrol and diesel drivers, the party is calling for:
- A reduction in the national bus fare cap from £3 to £1.
- A 10% across-the-board cut to rail fares.
- The removal of VAT on public electric vehicle (EV) charging points to bring them in line with home charging costs.
The party has also urged the Government to scrap further scheduled increases to fuel duty. Under current Treasury policy, duty is set to rise by another 2p on 1 December 2026, followed by a 3p increase in January 2027.
According to the Liberal Democrats, the total package is estimated to cost approximately £2 billion. Sir Ed argued that the move could be “self-funding” through higher VAT receipts generated by the current high price of oil and increased energy tax yields, though the Treasury traditionally views fuel duty as a primary revenue stream independent of VAT fluctuations.
Pressure on the upcoming Budget
The call for an emergency cut places further pressure on the Prime Minister and the Chancellor as they prepare for the upcoming Budget. The Government has not yet confirmed its stance on the scheduled December and January duty rises.
The Liberal Democrats argue that the temporary three-month measure is necessary to “keep Britain moving” during a period of exceptional geopolitical volatility. The party is also seeking the permanent removal of the “pavement tax” on EV users who do not have access to off-street charging, arguing the current VAT disparity is a barrier to the transition away from fossil fuels.