The UK government has extended the 5p fuel duty cut until the end of the year as it grapples to ease the cost of living.

The reduced tax rate, which was introduced by the previous government in response the Russian invasion of Ukraine's impact on prices, was due to be phased out this September.

But as the price of petrol and diesel has again soared since the beginning of the Iran war, Downing Street has extended the measure for the remainder of 2026.

Prime Minister Sir Keir Starmer told the Commons: "We're backing drivers by extending the freeze on fuel duty."

The BBC reports Downing Street said the fuel duty freeze would cost £455million for the current tax year, and had been made possible due to better economic growth figures.

The government is also planning to suspend some tariffs on food imports in a bid to tackle price increases.

The Times reports a full list of products will be published next week, but that it is expected to cover a wide range of products where British importers have to pay tax at the border.

Efforts are also being made to lower the cost of childcare over the summer holiday period.

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