An extension to the lower rate of fuel duty on red diesel was announced by Chancellor of the Exchequer John Healey on Wednesday.

The duty was originally cut from 10.18p/litre to 6.48p/litre in June 2026 in response to higher fuel costs stemming from the USA-Iran war.

As part of his 2026 budget speech, Healey said rates of fuel duty, including the 3.7p/litre cut to red diesel, would be extended from the end of 2026 to July 2027.

“I am extending these tax cuts through the winter and spring to July, supporting households, hauliers and farmers,” he said.

However, the budget was poorly received by the National Farmers’ Union, with its president Tom Bradshaw describing the fuel duty extension as “minimal relief”.

Inheritance tax

He pointed out that Healey’s first budget did not fully reverse the controversial inheritance tax changes announced two years ago by reinstating 100% relief on agricultural property.

“This was pitched as the ‘Budget for the working people of Britain’. Farmers and growers will not be feeling this extends to them,” Bradshaw said.