Rachel Reeves is on the verge of announcing a U-turn on Labour’s planned fuel duty rise after pressure from drivers, campaigners and Conservatives.
Graham said the expected climbdown would be a victory for rural drivers across Beverley and Holderness, but warned that Labour should never have put the rise on the table in the first place.
Rachel Reeves had planned to increase fuel duty by 5p a litre from September by phasing out the cut introduced by the Conservatives when fuel prices spiked.
That would have hit Beverley and Holderness hard.
For many people locally, driving is not a luxury. It is how they get to work, take children to school, care for relatives, attend medical appointments and keep small businesses running.
Villages and coastal communities across the constituency often have limited public transport. That means higher fuel costs do not just affect drivers at the pump. They push up the cost of deliveries, food, trades, farming, care and the weekly shop.
Fuel duty is currently 52.95p per litre on petrol and diesel. VAT is then charged at 20% on the full pump price, including the fuel duty itself.
That means a large share of every litre bought by drivers goes straight to the Treasury. At pump prices of around 160p per litre for petrol, tax alone is around 80p per litre, or about half the total price. For diesel at around 190p per litre, tax alone is around 85p per litre.
Graham said this shows why any further rise would have been so damaging for rural drivers, tradespeople, farmers and small businesses.
That is why Graham challenged the Prime Minister directly in the House of Commons on 12th March and asked him to rule out the rise.
Graham said: “Rural residents in Beverley and Holderness are reeling from the impact of higher fuel prices, yet two days ago, the Chancellor said that in September fuel duty would go up.
“My constituents want to know, as the Leader of the Opposition repeatedly asked: will that fuel duty go up in September and add to the misery of my constituents, or not?
“Will the Prime Minister, for once in this place, give the House and the people of this country an answer? Yes or no?”
The Prime Minister said fuel duty was frozen until September, but refused to rule out a rise after that.
Since then, pressure has continued to build.
Nationally, more than 60,000 people signed the Conservative petition against the rise. Thousands more wrote to Labour MPs, shared campaign material and made clear that taxing drivers more during a cost of living squeeze would be the wrong decision.
Locally, residents have also raised the issue through Graham’s cost of living survey.
Of those who responded, 73 residents named fuel and transport as one of the biggest pressures on their household budget.
Nigel from Preston said rural areas rely greatly on transport, so increased fuel costs have “a big impact”.
Tom from Woodmansey said local people rely extensively on private vehicles because there is not a large public transport network.
Christopher from Beverley said rural car use means high fuel costs have a disproportionate effect.
Yvonne from Preston said people rely on cars for shopping, doctors, hospitals, vets, charity work and hobbies because there are hardly any buses.
Patricia from Preston said public transport is infrequent, so fuel costs and wider car costs are having an impact.
Jennifer from Molescroft said: “My car is my legs.”
Graham has long opposed any rise in fuel duty. Fuel duty has been frozen since March 2011, with Conservative governments recognising that working people, families and businesses should not be treated as a cash cow every time they fill up.
The expected retreat on fuel duty follows a series of Labour U-turns after pressure from Conservatives, campaigners, businesses and the public.
The Conservative Party has highlighted Labour reversals or changes on issues including winter fuel payments, the Family Farm Tax, post offices, digital ID, phones in schools, fly-tipping and now fuel duty.
Graham said this showed that strong opposition can force Labour to change course.
Although the Conservatives are in opposition, Graham said his job remains the same: making sure Beverley and Holderness is heard at the national level and pushing the Government to change course when it gets things wrong.
Graham said: “Labour were ready to put fuel duty up. That would have hit drivers, families and businesses across Beverley and Holderness.
“I have long opposed any rise in fuel duty. It has been frozen since March 2011 because governments understood that drivers should not be treated as a cash cow.
“Driving is not a luxury here. It is a necessity. Cars and vans are how people get to work, take children to school, care for relatives and keep local businesses moving.
“That is why I challenged the Prime Minister directly and asked him to rule out this rise.
“My cost of living survey shows exactly why it matters. Residents are telling me that fuel and transport costs are already putting pressure on household budgets.
“If Rachel Reeves now drops this rise, that is good news. But she should never have planned it in the first place.
“This is part of a wider pattern. Labour get it wrong, Conservatives campaign, and Labour are forced into another U-turn.
“That is what strong opposition is for. Even in opposition, we are working hard for the people we represent.
“My job is to make sure Beverley and Holderness has a voice at the national level. Whether it is fuel duty, energy bills, farming, rural transport or local businesses, I will keep pressing the Government to listen and change course when it gets things wrong.
“Cutting costs for drivers is part of building a stronger economy and a stronger country.”
