UK cancels a planned rise in motor fuel tax

LONDON, May 20 (Reuters) - Britain ​will cancel a planned rise in tax on motor fuel and ​give ‌a 12-month road tax holidayto hauliers, the government said on ⁠Wednesday, part of its efforts to ⁠ease cost-of-living pressures driven ​in part by the Middle East conflict.

A freeze on fuel duty, currently saving drivers 5 pence per litre, was ​due ‌to expire in September,but will now be extended for the rest of the year, the government said in a statement.

The new 12-month road tax ​holiday will save hauliers up to £912 per vehicle, the ‌government added.

"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," Prime Minister Keir Starmer said ​in the statement.

"That’s why this government is stepping in to keep ‌fuel costs down for millions of drivers."

The freeze in fuel duty - first announced in 2022 and then extended four ⁠times ⁠under successive governments - was supposed to last ‌12 months, with a cost to the government of £2.4 billion, a ​government research ​briefing said in January. It was not ‌immediately clear how much the latest extension would cost.