Sir Keir Starmer has announced an extension to the temporary 5p cut in fuel duty - and a vehicle tax break for the haulage industry. The Labour Party leader told the Commons it was a necessary response to cost-of-living pressures. Asked by the Labour MP Kirsteen Sullivan about whether the government could do more to help with cost-of-living pressures, Starmer replied: “There is more that we can do, and I can announce today that we are giving our hauliers a 12-month vehicle tax holiday, helping to keep prices down, and we are backing drivers by extending the freeze in fuel duty for the rest of the year. “This is possible because of the decisions taken by the chancellor, making us the fastest-growing economy in the G7. She will set out further action tomorrow.” READ MORE Drivers face new seatbelt rule which could see 3 points on licence The Chancellor says she will 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. Referring to increased fuel prices caused by the US-Israeli attack on Iran, Starmer added: “This is not our war, but while the parties opposite wanted to jump into it, Labour will always protect working people.” Hauliers will get a 12-month road tax holiday to help keep costs down – this will in turn help with getting raw materials onto farms and produce into supply chains with the poultry sector having been particularly affected by increased costs associated with specialist bird movements. Drivers of Heavy Goods Vehicles will see tax renewals reduced by just £1 for a year in a move aimed at easing pressure on businesses hit by soaring fuel prices. The temporary measure will save operators of standard HGVs around £600, while the largest lorries on UK roads could save as much as £912. Isaac Delestre, Senior Research Economist at the IFS said: “A 5p cut to fuel duties was first implemented as a one-year measure in March 2022, but has been repeatedly extended ever since. "The autumn 2025 Budget announced that it would be phased out gradually, with the duty rate rising by 1p on 1 September of this year before rising by a further 2p on 1 December and finally by 2p more on 1 March 2027. "Today’s announcement delays the first two of these increases until 1 January 2027 (implying a 3p rise in fuel duties then and a further 2p rise on 1 March 2027). That delay will have a one-off cost to the exchequer of about £200 million. "If the Chancellor were to keep the full 5p cut permanently, it would cost about £2.3 billion a year by 2029-30, relative to current forecasts. “Government also announced a 12-month suspension of vehicle excise duty for hauliers and a one third cut in the rate of fuel duty for users of red diesel. The latter will cost around £60m. “Two good principles for emergency support are that it should be temporary and targeted. As announced, these measures are temporary, but the government is likely to face pressure to extend them. "The fuel duty cuts are targeted towards those households and firms most exposed to fuel price increases - though they will of course also weaken incentives to reduce fuel use.”