Chancellor John Healey has indicated that he is considering measures to ease the pressures of rising fuel prices ahead of the UK budget announcement scheduled for October 28. Speaking ahead of the Labour Party conference in Liverpool, Healey acknowledged the impact of soaring fuel costs on households and suggested that the government may offer some relief to provide people with “breathing space.”

Fuel prices in the UK have surged in recent months, driven by geopolitical tensions including the US-Iran conflict and attacks by Ukraine on Russian refineries. Diesel prices have reached nearly £1.98 per litre, approaching historic highs last recorded in 2022. Across Europe, governments have taken various steps to mitigate the strain on drivers: France is distributing €100 vouchers to motorists, Spain has extended petrol tax cuts, and former US President Donald Trump contemplated measures such as a diesel exports ban.

In the UK context, Healey refrained from confirming whether he would delay the planned fuel duty increases that were inherited from previous Conservative government policies. These measures include a 3p per litre rise in January followed by a 2p increase in March, effectively reversing a 5p cut introduced during Rishi Sunak’s tenure as prime minister in response to earlier fuel price volatility. In total, the fuel duty hike, including VAT, would translate to a 6p per litre increase.

Healey noted current retail prices at local filling stations, with diesel ranging between £1.92 and £1.95 and unleaded petrol between £1.72 and £1.75 per litre. He stated that the government is “conscious of these pressures” and committed to factoring them into budget decisions. A postponement of the duty rise could save average petrol car drivers approximately £3.30 per tank fill, potentially benefiting over 30 million motorists nationwide. Additionally, there is speculation that the government may also reconsider plans to unfreeze fuel duty, which would otherwise begin increasing in line with inflation next year.

Separately, the Labour Party’s Greater Manchester mayor Andy Burnham announced a housing initiative aimed at first-time buyers unable to rely on family support. The scheme, dubbed “Your First Home,” would allow eligible young buyers to secure properties with a deposit as low as 2.5 percent, reminiscent of previous Help to Buy models.

While Labour leader Keir Starmer has branded this conference with a message of “hope again,” his government faces challenges from broader global economic conditions that continue to squeeze household budgets in the UK.