Millions of drivers face extra hammering at petrol pumps as incoming PM Andy Burnham looks for cash to fund his rush to build more council houses, it is feared

Published: 13:48, 17 July 2026 | Updated: 13:55, 17 July 2026 Millions of drivers face an extra hammering at the pumps as Andy Burnham looks for cash to fund his rush to build more council houses, it is feared. Sources close to the Prime Minister-in-waiting repeatedly refused to rule out his incoming Government hiking the levy in the New Year and increasing it annually by linking it to inflation. By contrast, Mr Burnham has pledged to stick to Labour's manifesto commitment not to increase income tax, National Insurance or VAT. It has increased fears that Mr Burnham, who has so far revealed little detail about his tax and spend plans and refused to take questions at press conferences from journalists, will look to raid motorists. He has pledged to build the biggest number of council houses ‘since the post-War period’, but has failed to say how this would be funded. He has also pledged to overhaul social care, but is also yet to set out how he will pay for it. Fuel duty is currently frozen until January, having not risen for more than a decade, meaning Mr Burnham’s incoming administration faces the choice of whether to continue the freeze. Mr Burnham revealed little about his tax and spend plans during a speech installing him as the new Labour leader today Sources close to Mr Burnham repeatedly refused to say whether he would continue to freeze fuel duty or reverse a 5p a litre cut in the levy introduced by the Tories in 2022, which is set to expire on 1 January  The average cost of filling up remains £10 more expensive than before the Iran war, piling more pressure on family budgets   Tory shadow transport minister Greg Smith said: ‘We are already massively over taxed at the pumps. ‘Labour needs to understand that driving isn’t some luxury - it is vital for everyday life. Hammering people at the pumps helps no one.’ Howard Cox, founder of the FairFuelUK campaign, said: 'Frankly, I don’t trust Labour to support drivers or to reduce fuel costs in a sensible way to fight inflation and support economic growth. 'Their traditional short-termism, in fleecing drivers, remains at the heart of their fiscal DNA.' Sources close to Mr Burnham repeatedly refused to say whether he would continue to freeze fuel duty or reverse a 5p a litre cut in the levy introduced by the Tories in 2022, which is set to expire on 1 January. The Mail asked his press team twice this week but they refused to comment on both occasions. If Mr Burnham’s government allows it to expire, it would add more than £3 to the cost of a fill-up. They also refused to say whether he would look to link the levy to inflation so that it increases every year. Fuel duty, currently charged at 52.95p a litre, should increase in line with inflation annually but it was frozen by successive Tory chancellors between 2011 and 2024. Rachel Reeves, outgoing PM Sir Keir Starmer’s Chancellor, also chose to freeze it and extended this until 1 January to help out drivers amid sky-high pump prices sparked by the Iran war. But Mr Burnham, who was installed as Labour leader today but won't get the keys to No 10 until Monday, has indicated he will need to raise taxes to fund his spending plans, raising fears he will target fuel duty as well as other levies. During a speech today announcing him as the new Labour leader, Mr Burnham didn't reveal any detail about his tax and spend plans and didn't take questions from journalists, meaning he couldn't be asked about them.  He has faced growing criticism about the little scrutiny he has opened himself up to despite being just days away from being handed the keys to No 10. He also won't have to face MPs in Parliament for several weeks after it broke for the summer recess this week. Average pump prices were 152.54p a litre for petrol today and 167p for diesel. They dipped after a US-Iran ceasefire was announced in June. But after it broke down this month, prices have been on the rise in recent days. Before the Iran war, they were 132.83p a litre and 142.38p respectively, meaning a fill-up is still £10 more with both fuels than before the conflict broke out. This adds more than £100 to the average family’s annual petrol bills. Simon Williams, the RAC’s fuel guru, said: ‘Sadly for drivers - many of whom will be about to depart for a much-needed break [as schools close for the summer] - prices at the pump are on the rise again. ‘Since hitting a three-month low on 6 July, petrol has already gone up 2p while diesel has jumped 2.5p in just over a week.’