Cheaper Fuel

The 5p fuel duty cut will now continue until the end of 2026. This means many people in rural areas like Cornwall who rely on their cars will be able to breathe a sigh of relief as they now have some certainty until the end of the year.

Additional support is also available for those who use their vehicles for work, with increased tax-free mileage rates this year. This is particularly important for sectors such as health and social care in Cornwall who travel further than the average for jobs.

There’s extra support for important sectors facing higher fuel costs. Hauliers will be given a 12-month road tax holiday. The Government sees the essential role of the road haulage sector in keeping goods moving and its huge exposure to fuel costs.

From 15 June, farmers and other red diesel users will see their fuel duty cut by over a third until the end of the year - the lowest rate in over 20 years. This helps keep the cost of business down at a difficult time when red diesel prices are around 50% more than their pre-Iran war levels.

These measures offer short-term relief while we work hard to end our reliance on oil and gas as a country and switch to renewables, EVs and rail freight where possible.