‘Wait for Budget,’ says Prime Minister amid questions on fuel cost-cutting plan

Motorists must “wait until the Budget” to find out whether fuel duty will be cut to tackle soaring diesel prices, Andy Burnham has said.

The Prime Minister warned “world events” were behind the rising cost of fuel at the pump and told BBC East Yorkshire and Lincolnshire’s Tim Iredale that people were being asked to pay “too much for the basics in this country – for housing, for water”.

According to the RAC, the average price of diesel has hit 198.32p and could reach record highs over the coming days.

Simon Williams, the automotive firm’s head of policy, has forecast “the record of 199.09p will almost certainly be surpassed over the weekend”, at the same time the Labour Party’s conference gets under way in Liverpool.

“Sadly for drivers, there appears to be no end in sight to high prices at the pumps as the cost of a barrel of oil hit 106 dollars (£79) having been around that 100 dollar (£75) mark for the last two weeks,” Mr Williams said.

“A significant drop in the price of oil is badly needed but this seems unlikely without the US and Iran striking a deal.”

Mr Burnham faced questions about the cost of fuel as he took questions as part of a marathon broadcast media round on Friday evening.

Asked whether he will cut taxes on diesel, the Prime Minister replied: “People will have to wait for the Budget on this one.”

He said he did not “want to appear like a politician” by not answering the question.

He added: “I am well aware, though, of the pressure on people and particularly the cost of fuel.”

Mr Burnham also told the broadcaster he had raised the cost of fuel with US President Donald Trump when he travelled to New York for the United Nations General Assembly earlier this week.

“Obviously the key issue there is to bring an end to the Middle East conflict as quickly as possible,” he continued.

“And Britain is playing its part in that.

“I agreed to some requests from the Saudi Arabian government to protect fuel infrastructure, oil infrastructure in the region, from attack to keep the supplies coming.”

Asked whether a cost of more than £2 per litre for diesel was “acceptable”, the Prime Minister said the cost rise was “barely in” the UK Government’s control.

“Obviously, it’s driven by world events and the supply of fuel or the restriction on the supply of fuel in the Middle East,” he added.

Mr Burnham also said billpayers “can look forward to” several measures designed to tackle the cost of living over the coming months, including the decision to remove VAT from electricity bills in England, Scotland and Wales from October 1.

Speaking to ITV West Country’s Alicia Fitzgerald, he said: “Next week, people will see VAT come off their electricity bills and that will make a difference.

“OK, not the full difference that people need, but it is just about easing the pressure where we can.”

The Prime Minister pointed to his previous announcement that single bus fares would be capped at £2 in England, outside of London, throughout 2027.

“I’m not going to sit here and say that these things sort everything out,” he continued.

“But what I can say is it’s a sign that I’m prepared to act to help people in difficult times and more will be obviously announced at the Budget.”

Chancellor John Healey is due to unveil his first Budget in the role on October 28.