Chancellor extends 5p fuel duty cut to July 2027

Summarised from 4 outlets · Updated 28 Oct, 13:29 · Archive

Chancellor John Healey has extended the 5p fuel duty cut until July 2027 as part of his budget package.

Chancellor John Healey has announced an extension of the 5p fuel duty cut until July 2027. He told MPs that the cut would support households, hauliers and farmers through winter and spring, citing high fuel prices driven by the war in the Middle East.

The Chancellor also announced changes to mileage allowances for workers who rely on cars for their work, such as care workers and engineers. The higher mileage rate will increase from 25p to 35p per mile, and the increase to the standard mileage rate introduced earlier this year will be made permanent.

Red diesel has also been reduced to its lowest rate in over 20 years, according to Mr Healey. These tax cuts form part of a wider budget package designed to provide relief on the cost of living and the cost of doing business.

Mr Healey said the budget was intended to support working people while maintaining the Government's commitment not to raise taxes on them. The package also aims to support businesses and growth and tackle longer-term challenges including energy, national security, public services and housing.

The Chancellor told MPs that the Government has £15 billion of fiscal headroom in 2029 to 2030, rising to £22 billion in 2030 to 2031. He said the budget would put the public finances on course to eliminate the current budget deficit within three years.

Chancellor extends 5p fuel duty cut to July 2027 — Image: Westmorland Gazette

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How it is being reported

5p fuel duty cut extended to July 2027 by Chancellor John HealeyThe fuel duty cut is part of a wider Budget package that Mr Healey said would support working peopleWestmorland Gazette · 28 Oct, 13:11
5p fuel duty cut extended to July 2027 by Chancellor John HealeyThe fuel duty cut is part of a wider Budget package that Mr Healey said would support working peopleCumberland News · 28 Oct, 13:11
5p fuel duty cut extended to July 2027 by Chancellor John HealeyThe fuel duty cut is part of a wider Budget package that Mr Healey said would support working peopleNW Evening Mail · 28 Oct, 13:11
5p fuel duty cut extended to July 2027 by Chancellor John HealeyThe fuel duty cut is part of a wider Budget package that Mr Healey said would support working peopleWhitehaven News · 28 Oct, 13:11

In this story: John Healey · Rachel Reeves · Middle East

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