Davey calls for emergency cuts to fuel duty and rail fares

Sir Ed Davey has called for an emergency 10p cut to fuel duty as well as 10% off rail fares and a £1 cap on bus tickets to help ease the impact of what he has dubbed Donald Trump's "idiotic war" with Iran.

Speaking at a press conference in London, the Liberal Democrat leader also said he wanted to see Chancellor Rachel Reeves cut VAT on public charging of electric vehicles.

He said the measures would reduce inflation and that the cuts could be paid for with money from taxes on oil and gas companies.

Fuel duty is due to increase in September but the government has said it is keeping the rise under review, following the outbreak of war in the Middle East.

The conflict has seen Iran effectively close the vital oil shipping channel in the Strait of Hormuz, leading to a spike in oil prices.

A Labour Party spokesperson said: "The government is supporting families with the cost of living.

"We've frozen fuel duty until the autumn, cut energy bills by an average of £117, and are supporting households that use heating oil - to put money back in people's pockets."

The Conservatives and Reform UK have been calling on the government to reconsider the autumn rise in fuel duty, which has been frozen since 2022 when Russia invaded Ukraine.

Instead of waiting until September, Sir Ed said ministers should "cut fuel duty now" taking the tax down to 12p per litre.

"Donald Trump's idiotic war with Iran – cheered on by Kemi Badenoch and Nigel Farage – is making it far more expensive for people to get around.

"Families are paying more at the pump because of a war they didn't start and don't support."

He added: "We can't afford for the chancellor to stand back, watch people struggle and let Britain's economy grind to a halt."

At the start of the conflict, the government refused the US permission to use UK bases for offensive strikes on Iran but has since allowed them to be used for defensive action.

Conservative leader Kemi Badenoch has been accused of changing her mind on the subject, having initially said the UK should have backed the US.

Speaking to Sky News over the weekend, she said she had never said the UK should have joined in with the initial strikes, adding: "I have said if we are being attacked we should defend ourselves."

At the start of the war, Reform UK leader Nigel Farage said the UK should have backed the US and Israel "on day one".

On Thursday he said Sir Keir "may be right not to commit us militarily to direct involvement - the truth is we couldn't do it anyway".

The US President has said the war was "necessary for the safety or America" and the world, point to terrorist attacks that had been carried out by Iran.

In a an address to his country, he said the US was "nearing completion" of its "core strategic objectives" in the war.

On Wednesday, Prime Minister Sir Keir Starmer warned that dealing with the economic consequences of the conflict would "not be easy".

Apart from extra money to help those who use heating oil, the government is holding off announcing further support for now.

The government is arguing that the energy cap means households will be protected from bill increases until June and that energy usage is usually lower in the summer months.

Ministers have said that any support would be targeted at "those who need it most".

Labour said the Liberal Democrats were "pledging multi-billion-pound unfunded tax cuts and can't say how they'd pay for it - it would make Liz Truss blush."

In addition to calling for the fuel duty rise to be scrapped, the Conservatives and Reform UK want to see VAT taken off household energy bills.

Some Labour MPs are also privately questioning why the prime minister has so far not committed to ditching the increase in fuel duty.

Reform's Treasury spokesman Robert Jenrick has urged the government to halve VAT on petrol for three months, claiming that Labour is "doing nothing" about what they acknowledge is a crisis.

The Green Party of England and Wales says the government should make plans to cover potential energy bill rises of up to £300 per household.

It says policy would cost around £8.4bn and could be paid for by raising tax on capital gains and energy firm's profits.

The SNP wants to see the Scottish Parliament in Holyrood get control over energy policy and has argued that Scottish independence would help reduce bills.

Plaid Cymru has said long-term investment in renewables would help protect people from energy price hikes.