The Tories are set to force a vote in the Commons on scrapping a planned fuel duty increase amid soaring oil prices following the US-Israel attacks on Iran.

Shadow transport secretary Ricard Holden branded the increase “another egregious tax” as he opened an Opposition Day motion on Wednesday in an effort to block the proposed September rise.

Oil and gas prices have been driven up as Iran has throttled key shipping routes through the Strait of Hormuz, with commercial vessels coming under attack in the region.

The Conservatives’ motion is unlikely to pass due to Labour’s large Commons majority.

Mr Holden branded the increase the “wrong thing to do” and accused the Government of “choosing to balance the books on the back of working Britain”.

He said: “This House has come together to hear of yet another egregious tax on transport pushed out by this Labour Government at a time when people across the country are worried about the cost of getting around.

“On this occasion, the Government, in its infinite wisdom, has decided that this is a moment, the opportune time, to cancel the fuel duty freeze the last Conservative government kept for 13 years, protecting hard-working people from paying extra to get to work, to have appointments, to visit friends and families.”

Fuel duty has been frozen since 2011, and was temporarily cut by 5p in 2022 in response to Russia’s full-scale invasion of Ukraine.

In her budget last year, Ms Reeves said the 5p cut would be gradually unwound from September.

Mr Holden continued: “Under this Government, on top of the countless tax rises that they‘ve already shafted us with, we cannot even get through two years before they decide that the British people need yet another tax rise, and it’s a tax rise in a sneaky and stealthy way.”

Under current plans, fuel duty will rise by 1 pence per litre in September. The current levels are the same as the freeze introduced in March 2022.

He said: “The British people deserve better than underhand taxes swindling them out of the pounds in their pockets, and to pay for that? To pay for more welfare, a tax on every car, every van, every motorbike and every bus.”

Treasury minister Torsten Bell responded that the Government recognises that “fuel costs matter enormously to people right across the country” and insisted they have “already taken action to ensure that fuel remains affordable”.

“In November’s budget, we extended the temporary 5p per litre cut to fuel duty for a further five months,” he said.

“Additionally, we cancelled the inflation-linked increase plan for 26/27.

“Our fuel duty changes will save the average motorist over £90.”

He added: “This Government will take the necessary decisions to help protect both household finances and public finances.”

“For all the froth from the shadow secretary of state, the truth is the last government didn’t budget for any extension of the 5p cut.

“They said explicitly it was temporary, and on the level of fuel duty, here is the truth: through the entire 14 years in office, it was never lower than it is today. In fact, it  was higher than it is today for 80% of the time they were in office.”

Pawnbroker Ramsdens has significantly upgraded its annual profit forecast, attributing the boost to record levels of lending as consumers increasingly turn to their jewellery for cash amidst soaring gold prices.

The lender and retailer noted the precious metal’s higher price was driving demand and bolstering profits.

Pawnbroking lending hit record levels in February, continuing into March, and boosting its loan book by 18 per cent since the financial year ended in September.

Ramsdens’ service allows individuals to secure loans against jewellery or watches.

The company also purchases unwanted items for resale in stores, online, or to bullion dealers. Furthermore, revenues from its jewellery shops climbed by approximately a quarter year-on-year.

It comes as the price of gold has rallied to reach record highs at points during 2026, as investors sought refuge during global geopolitical uncertainty, conflict and worries about tariffs.

The most recent spike occurred at the beginning of March following the escalation of conflict in the Middle East, with gold hitting around $5,400 (£4,040) an ounce.

The average gold price for the year-to-date is about 50 per cent higher than last year,  and the geopolitical and economic climate could mean it remains elevated throughout the months ahead, Ramsdens said.

The London-listed business told investors that owing to stronger trading in the first five months of its financial year and the outlook for gold prices, it was now expecting to make an annual pre-tax profit of at least £24 million, which could rise to as much as £28 million.

Analysts had previously been forecasting a profit of £21.1 million for the year to the end of September.

Get a free fractional share worth up to £100.
Capital at risk.

Terms and conditions apply.

Go to website

ADVERTISEMENT

Get a free fractional share worth up to £100.
Capital at risk.

Terms and conditions apply.

Go to website

ADVERTISEMENT

Chief executive Peter Kenyon said: “In addition to underlying progress across the business, we continue to benefit from the high gold price, which is significantly boosting both customer demand and profits within our purchase of precious metals segment.”

open image in gallery

Russ Mould, investment director for AJ Bell, said: “This is the second profit forecast increase of 2026, following on from February’s trading update, and means Ramsdens is now on track to post record annual earnings in the 12 months to September 2026.

“The good news is it is not just the soaring gold price that is doing the heavy lifting.

“Ramsdens reports strong sales of jewellery and rapid growth in the pledge book at the pawnbroking operation, while the foreign currency exchange business seems steady, although there remains a chance that the conflict in the Middle East has an impact there at some stage.”

Ramsdens’ shares jumped by about a tenth on Wednesday.