The Government  has announced that the 5p cut on fuel duty will be extended for the rest of the year, to help motorists navigate high fuel prices due to the  war in Iran.

The will also give hauliers a 12-month road tax holiday – meaning they will pay £1 at renewal, saving £600 for a typical heavy lorry and £912 for the biggest vehicles on the road.

Farmers, rail freight, and other red diesel users will also see their fuel duty cut by over a third until the end of the year. This is the lowest rate in over 20 years, helping to keep the cost of doing business down at a difficult time when red diesel prices are around 50% more than their pre-crisis levels.

Prime Minister Keir Starmer said: "I know many are feeling the pressure of energy and fuel costs, and are worried about how the conflict in Iran will affect their finances. Because when global events drive up prices, it’s working people who feel it first.

"That’s why this government is stepping in to keep fuel costs down for millions of drivers and putting money back in the pockets of working people."

Chancellor of the Exchequer Rachel Reeves said: "I’m keeping taxes down for drivers and businesses – putting money in the pockets of millions of workers and cutting costs for farmers and hauliers.  

"The war in Iran is pushing up fuel prices here at home but after strong growth at the beginning of the year, I am stepping in to protect people at the pump

"By protecting households and businesses we are building a stronger and more secure economy for Britain. That is the right economic plan."