Andy Burnham under pressure to ‘abandon’ 2027 5p rule plan

Andy Burnham is coming under mounting pressure to axe Labour’s new 5p road rule from 2027 as costs continue to soar out of control. Labour had wanted to reverse the Conservatives’ 5p cut on fuel duty, with the first increases expected in months.

Petrol and diesel fuel duty updates were set to come into effect in 2026, but the changes were pushed back by Rachel Reeves and Sir Keir Starmer into 2027.

The legal default is for fuel duty prices to start rising from January, with an initial 3p rise on the cards before further increases from March.

By mid-2027, the 5p cut is scheduled to be completely reversed, with the initial 57.95p fuel duty costs coming back. However, experts are now piling on Labour to “abandon” the plan and change tactics as fuel costs surge.

Gordon Balmer, Executive Director of the Petrol Retailers Association (PRA), said: “The average pump price for diesel has now hit a record high, putting further financial pressure on hard-pressed motorists and businesses. Our members are doing their best to shield customers from soaring fuel prices by absorbing rising wholesale costs.

“Data from EdgePetrol indicates that retail margins for Diesel have reduced by 21% since July. To identify the lowest fuel prices, I encourage motorists to use the PetrolPrices.com app. I again call on the Chancellor to abandon plans to increase fuel duty in the new year.”

Just stopping the reversal of the 5p cut may not be enough, with the AA also demanding changes to VAT rates to help motorists struggling to stay afloat.

AA President Edmund King said: “The Government could afford to scrap the planned 5p increase and cut off a further 5p as every 5p change draws 1p extra or less in VAT. In the last year prices have increased by about 40p litre, so the Government’s VAT windfall is approximately 6.5p and so could ‘pay’ for a cut.”

Campaigners at FairFuelUK have even suggested Mr Burnham should go further and radically slash fuel duty prices sooner rather than later. They stressed that the Government must not wait for the Autumn Budget later this year and deliver an emergency 10p cut today.

Mr Healey has given his first hint that fuel prices could be under review at his Budget in late October, admitting he was "concerned" by rising costs. However, Labour seems keen to keep information about policies close to their chest for now, which could prove an anxious wait for Britain’s motorists.

Mr Healey told ITN: “I’m concerned. I’m conscious of the pressure this is putting on people, on businesses, as well as people at the pumps.

“And this is a government that will do what we can to give people a bit of breathing space. But those are decisions that I will make in the round at the Budget.”