Sir Ed Davey, the leader of the Liberal Democrats, is urging the UK government to reduce fuel duty by 10p per litre immediately and keep it reduced until Christmas. This is part of a broader effort to ease the cost of living for households and businesses. He is also calling for the cancellation of a planned permanent increase in fuel duty, which was set to take effect in January. Fuel duty, a tax on petrol and diesel, had been frozen by the previous Conservative government in March 2022. The current Labour government, led by Sir Keir Starmer, extended the freeze and delayed a scheduled 3p increase from September until the end of this year. According to the Liberal Democrats, cutting fuel duty by 10p would lead to a 12p per litre drop in the price of petrol and diesel at the pump. Sir Ed argued that this temporary measure would support drivers and stimulate the economy, noting that the cost of fuel has risen significantly due to global tensions, including the conflict between the United States and Iran. The proposed policy would cost around £2 billion, but Sir Ed claims it would be self-funding through additional government revenues from sources such as energy profits, gas taxes, VAT, and fuel duty itself. In a speech at the Liberal Democrats’ conference, Sir Ed also proposed further measures to reduce the cost of living. These include lowering the bus fare cap from £3 to £1, reducing rail fares by 10 percent, removing VAT on public electric vehicle charging points, and reviewing what the party calls unfair network costs. These proposals are part of a broader push to make transportation more affordable for the public. Chancellor John Healey is currently under pressure to address rising government borrowing costs in his upcoming Budget. When questioned about the Liberal Democrats’ fuel duty proposal, Labour Party chair Bridget Phillipson said that while the party acknowledges the Liberal Democrats’ arguments, the Labour government has already taken action on fuel duty. She noted that the Liberal Democrats’ conference is a platform for their policy ideas, but the Labour government will make its own decisions ahead of the Budget.