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Britain's Prime Ministers, Government & the Cost of Living

Welcome to No10.co.uk — a plain-English reference for anyone trying to make sense of who runs the country, how Westminster actually works, and how the decisions made in Downing Street affect what you pay at the petrol pump.

We're independent, non-partisan, and we keep things short. No spin, no party line, just the facts you need.

Pillar One

UK Prime Ministers

The United Kingdom has had a Prime Minister since 1721, when Sir Robert Walpole became the first to hold what we now recognise as the role. Since then, more than 55 men and women have served. Below are the most recent holders of the office.

Recent Prime Ministers

Prime MinisterPartyTook OfficeLeft Office
Sir Keir StarmerLabour5 July 2024Incumbent
Rishi SunakConservative25 October 20225 July 2024
Liz TrussConservative6 September 202225 October 2022
Boris JohnsonConservative24 July 20196 September 2022
Theresa MayConservative13 July 201624 July 2019
David CameronConservative11 May 201013 July 2016
Gordon BrownLabour27 June 200711 May 2010
Tony BlairLabour2 May 199727 June 2007
Sir John MajorConservative28 November 19902 May 1997
Margaret ThatcherConservative4 May 197928 November 1990

What does the Prime Minister actually do?

The Prime Minister is the head of His Majesty's Government. They are not elected directly by voters — instead, the monarch invites the leader of the party (or coalition) most likely to command a majority in the House of Commons to form a government.

The PM's main jobs include:

Where does the name "No 10" come from?

10 Downing Street has been the official residence of the First Lord of the Treasury — a title held by every PM — since 1735, when King George II gave it to Sir Robert Walpole. The famous black door, the brass letterbox engraved "First Lord of the Treasury," and the lion's-head knocker are among the most recognised features of British political life.

Pillar Two

How British Government Works

The UK has a parliamentary democracy and a constitutional monarchy. Power is split across several institutions, with the Prime Minister and Cabinet at the heart of the executive branch.

The Main Institutions

The Monarch

King Charles III is the Head of State. The role is largely ceremonial — the monarch grants Royal Assent to laws and appoints the Prime Minister.

The Prime Minister

Head of Government. Leads the Cabinet, sets policy direction, and is accountable to Parliament.

The Cabinet

Around 20-25 senior ministers who run the major government departments and take collective decisions on policy.

House of Commons

650 elected MPs who debate and pass laws, scrutinise government, and approve taxation and spending.

House of Lords

The unelected upper chamber. Around 800 peers review and revise legislation, though they cannot block money bills.

The Civil Service

Politically neutral officials who carry out government policy, regardless of which party is in power.

How a Law Gets Made

  1. First Reading — The bill is introduced in the Commons (or Lords)
  2. Second Reading — MPs debate the general principles
  3. Committee Stage — Detailed line-by-line examination
  4. Report Stage — The whole House considers amendments
  5. Third Reading — Final debate and vote
  6. The Other House — Repeat the process in the Lords (or Commons)
  7. Royal Assent — The monarch formally signs the bill into law

The Budget and the Spring Statement

The UK has two major fiscal events each year. The Autumn Budget (usually late October or November) is the big one — the Chancellor of the Exchequer sets out tax and spending plans for the year ahead. The Spring Statement (typically March) is a lighter update on the economy, though Chancellors have used it to announce major changes too.

Both events directly affect household bills, including the cost of filling up your car — which brings us to the most contentious tax in modern British politics.

Pillar Three

Fuel Duty Explained

Fuel duty is the single tax most likely to make a British driver swear at the news. It's been frozen for 16 years — until now. The freeze is being unwound through 2026/27, bringing the first real rise in pump prices since 2011.

UK Avg Unleaded
158.0p
per litre
UK Avg Diesel
185.2p
per litre

The Current Rate

52.95p

per litre on standard petrol and diesel.

Next scheduled change: 1 September 2026 (+1p → 53.95p)
Source: HM Treasury / Office for Budget Responsibility

What is fuel duty?

Fuel duty is a flat tax charged on every litre of road fuel sold in the UK. Unlike VAT, it doesn't change with the price of oil — it's a fixed amount per litre, set by the Chancellor and collected by HMRC.

On top of fuel duty, VAT at 20% is then added to the entire price (including the duty). Yes — you pay tax on top of tax. Between the two, roughly 50% of what you pay at the pump goes to the government.

How the price of a litre breaks down

For the current UK average petrol price of 158.0p per litre, the breakdown looks like this:

Wholesale + retailer
78.7p
Fuel duty (flat)
52.95p
VAT at 20%
26.3p
Total: 158.0p per litre · Tax element: 79.3p (50%)

The retailer's margin is typically just a few pence per litre. Your local petrol station isn't making a fortune on each fill — most of what you hand over goes straight to the Exchequer.

Find the cheapest fuel near you

Pump prices vary by up to 20p per litre between stations — even on the same road. Our sister site compares live prices at thousands of UK forecourts.

Compare Petrol Prices »

Who decides the rate?

The Chancellor of the Exchequer sets fuel duty rates as part of the Budget. The rate has historically risen each year in line with inflation (the so-called "fuel duty escalator"), but the political cost of those rises has led successive governments to freeze or cut the duty instead.

Why has it been frozen since 2011?

In short: fear of voter backlash. Motoring is a major household cost, and any rise in fuel duty is felt immediately at the pump. The Conservative-Liberal Democrat coalition introduced the freeze in 2011, and every subsequent Chancellor — Conservative and Labour — has chosen to extend it. In 2022, in response to the energy crisis triggered by Russia's invasion of Ukraine, a temporary 5p cut was added on top of the freeze.

The 2026/27 Unwinding

The freeze is ending. The temporary 5p cut expires on 22 March 2026, and the rate will then rise in three stages:

  • 1 September 2026: +1p  →  53.95p
  • 1 December 2026: +2p  →  55.95p
  • 1 March 2027: +2p  →  57.95p

By March 2027, filling a 55-litre tank will cost around £2.75 more than today. Inflation-linked annual rises are planned from April 2027 onwards.

How much does fuel duty raise?

Roughly £24 billion a year — making it one of the largest sources of tax revenue for the Treasury, alongside income tax, National Insurance and VAT. It funds general government spending, not roads specifically (despite what many drivers assume).

Beat the next price rise

With fuel duty rising in stages through 2026/27, smart drivers are already using price comparison tools to find the cheapest forecourts on their route. Free to use, no sign-up needed.

Check Today's Prices »
Reference

Fuel Duty: A Timeline

The story of fuel duty over the last 30 years is a story of Chancellors trying — and mostly failing — to make drivers pay more.

1993

Conservative Chancellor Norman Lamont introduces the "fuel duty escalator" — automatic above-inflation rises designed to discourage driving and cut emissions.

2000

The fuel protests bring Britain to a standstill. Hauliers and farmers blockade refineries; petrol stations run dry within days. The Labour government, under Tony Blair, freezes the escalator.

March 2011

Chancellor George Osborne cuts fuel duty by 1p in his Budget and scraps the escalator. The rate is set at 57.95p per litre and frozen indefinitely.

2011 – 2022

Every Chancellor — Osborne, Hammond, Javid, Sunak — extends the freeze. The cumulative real-terms saving for drivers grows year on year.

March 2022

In the wake of Russia's invasion of Ukraine, pump prices approach £2 per litre. Chancellor Rishi Sunak announces an emergency 5p cut, bringing duty down to 52.95p.

2023, 2024, 2025

The "temporary" 5p cut is extended three times — first by Jeremy Hunt, then by Rachel Reeves under Labour.

Autumn 2025

The Labour government announces the end of the freeze. The 5p cut will be reversed in three stages over 2026/27, and inflation-linked rises will return from April 2027.

September 2026

The first fuel duty rise in 16 years takes effect — 1p added, with two further 2p rises to follow.

Quick Answers

Frequently Asked Questions

Who is the current UK Prime Minister?
Sir Keir Starmer, leader of the Labour Party, has been Prime Minister since 5 July 2024.
What is the current rate of fuel duty?
52.95 pence per litre on standard petrol and diesel. The next scheduled change is on 1 September 2026 (+1p → 53.95p).
How much of the petrol price is tax?
Roughly 50%. On the current UK average litre at 158.0p, around 79.3p goes to the government — 52.95p in fuel duty plus around 26.3p in VAT.
Does fuel duty pay for the roads?
No. Fuel duty goes into general government revenue and funds the NHS, defence, schools, pensions and everything else. There is no direct link between fuel duty and the roads budget.
Who was the first British Prime Minister?
Sir Robert Walpole, who took office on 3 April 1721 and served until 1742 — the longest continuous tenure of any PM in British history.
How is a new Prime Minister chosen?
The monarch invites the leader of the political party most likely to command a majority in the House of Commons to form a government. There is no separate election for the PM — voters elect MPs, and the party with the most MPs (or a workable coalition) forms the government.
Where can I find the cheapest petrol near me?
Our sister site, PetrolPrices.co.uk, compares live prices at thousands of UK forecourts — free to use, no sign-up needed.