Image source, UK Parliament

Prime Minister Keir Starmer brought the cost of living to the fore of PMQs this afternoon with his announcement the government would be postponing a 5p rise in fuel duty "for the rest of the year".

Following up the PM's Commons announcement, the government also said the fuel duty on red diesel used in farming and rail freight would be cut by over a third, and hauliers would also receive a "holiday" from vehicle excise duty for 12 months.

Today’s announcements and the ones to come are an indicator of how keenly aware the cost of living pressures already are for millions of families, our political editor Chris Mason writes.

But Tory leader Kemi Badenoch accused Starmer of a U-turn, while also pressing him on the government's decision to alter some sanctions on products from Russian oil as the Iran conflict causes fuel prices to soar. Starmer defended the move, saying "none of the existing sanctions are being lifted in any way".

Image source, UK Parliament

Today's session came against the backdrop of a potential Labour leadership contest following the party's damaging local elections results earlier this month. Badenoch said Starmer was "hanging by a thread" but the PM ignored her jab, instead highlighting the fall in the inflation rate.

But his premiership was brought back into focus when former Health Secretary Wes Streeting - who has said he will fight any leadership contest - delivered his resignation speech in the Commons after stepping down from cabinet last week.

Streeting said that unless the government changed its course, it risked handing the keys of No 10 to Reform. "The Labour Party was elected to deliver real change, we still can," he said.

We're ending our live coverage for now, but you can read more here in our news story.

North Sea oil wouldn’t replace imports soonpublished at 15:18 BST

15:18 BST

By Anthony Reuben

Conservative leader Kemi Badenoch earlier criticised the government’s move to alter sanctions for companies buying diesel and jet fuel refined from Russian crude oil by third countries.

She asked Prime Minister Keir Starmer at PMQs "why oil from Russia is acceptable but oil from Aberdeen is not?" - referring to crude extracted from the North Sea.

Treasury minister Dan Tomlinson told BBC Breakfast that while the UK is still strongly supporting Ukraine, “we have to make sure that we protect the security of supply for really important foundational goods in our economy such as jet oil.”

There have been concerns about the supply of certain fuels due to the effective blockade of the Strait of Hormuz since the start of the US and Israel’s war with Iran.

Badenoch has been among those calling for the government to offer more licences to firms wanting to explore for oil and gas in the North Sea.

But even if more licences were made available, it would likely take years before any extra fuel could be refined from the extracted oil.

The North Sea Transition Authority said in 2023, external: “In recent years, the average time from licence award to production is around five years.”

Image source, House of Commons

Streeting ends his speech by saying the UK has been capable of doing big things in times of greatest peril, adding: "We still can."

He says: "Britain used to punch above its weight in the world, we still can."

The Ilford North MP then quotes Deborah James, known as "Bowelbabe", saying: "Take risks, love deeply, have no regrets and always, always have rebelious hope."

He says the government can and must do better, adding that he left his post with "rebellious hope".

"The Labour Party was elected to deliver real change, we still can," he says.

We're leaving the former health secretary's resignation speech there.

Moving on to the economy, Streeting says the "fragile peace" has not resolved the crisis in the Strait of Hormuz and the consequences for British people will be "stark".

He says Chancellor Rachel Reeves has been delivering the fastest growing economy in the G7, but this is being "undermined by the consequences of a war we did not choose".

He moves on to the EU, saying it is even more clear today that "we would have been better off leading Europe than leaving the European Union," and argues again for a "new special relationship" with the bloc.

Streeting goes on to say that leaving his role has been an "emotional wrench", before referring to his own treatment for cancer.

Streeting describes his old job as one of massive responsibility and enormous privilege, but that he left it because the government is currently "losing" its fight against nationalism.

He says that unless the government changes its course, it risks handing the keys of No 10 to Reform.

The Ilford North MP also says the rise of nationalism in Scotland and Wales poses an "existential threat" to the future integrity of the UK.

Image source, House of Commons

We are now turning back to the Commons where former Health Secretary Wes Streeting is giving his resignation speech after he quit the cabinet last week.

"The test of any of us in politics is did we leave things in a better place than we found them," he says, pointing to improvements in NHS waiting lists and patient satisfaction which he says demonstrate the service is "on the way to recovery".

You can watch his speech live at the top of this page.

Image source, PA Media

Back in the Commons, MPs have been given the chance to ask ministers about changes to new sanctions on imports of diesel and jet fuel made from Russian oil.

Conservative MP Julian Lewis asks Trade minister Chris Bryant whether the "complex issue" has been handled "very very clumsily, to put it mildly".

Lewis asks whether the Ukrainians were given an explanation in advance, and asks if the government's stance on North Sea drilling has put the government in the position of having to make the "unsavoury" decision.

Bryant responds by saying, "the one bit I completely agree with him on is that we've handled this clumsily, and that's entirely my fault and I apologise".

As our political correspondent Jack Fenwick has explained, a package of measures came into force today banning the import of products made from Russian oil that are refined in a third country, but it contains exemptions for some jet fuel and diesel.

Bryant tells the Commons, "we're not waiving any sanctions and...for the first time from today we have legislation in place that means it will be illegal to import Russian refined goods that have been refined in a third country including India and Turkey and elsewhere".

Jack Fenwick
Political correspondent

In October last year the government announced a new package of sanctions on Russia, which included a ban on the import of products that were made from Russian oil and then refined in a third country.

That package of measures has come into effect today and includes arrangements to still allow the import of some jet fuel and diesel made from Russian oil.

The government says those arrangements are temporary and are designed to protect UK consumers.

There are concerns over jet fuel supplies because of the conflict in the Middle East.

The government says sanctions on Russia have been strengthened rather than watered down.

It is the case that sanctions on Russia are stronger today than they were yesterday, as a result of this package of measures.

But it is also the case that today’s measures include what appears to be a specific loosening compared with what had been expected.

The issue of support for Ukraine is something Keir Starmer has heavily relied on during the last few weeks. It’s an area his MPs fully support him on and one where Downing Street is confident that Starmer is chiming with public opinion.

Those around him will be desperate that the government is not seen to be reneging in any way on that support. They insist this package of sanctions will only make things harder for Vladimir Putin’s regime.

Some reaction now to Keir Starmer's announcement that a 5p increase in fuel duty - due to be phased in from September - was being postponed until next year.

Steve Gooding, director of motoring research at the RAC Foundation, says:

"Although today’s news on fuel duty won’t have the immediate effect of bringing forecourt prices down, at least it shows that ministers have registered the financial pain caused by rampant pump prices for individuals and for business.

"Since the start of the Iran conflict, drivers have already paid a war premium of a staggering £3bn in inflated fuel prices, half-a-billion of which has gone to the Exchequer in VAT receipts."

Image source, Getty Images

How much could the fuel duty freeze cost?published at 13:14 BST

13:14 BST

By Anthony Reuben

Prime Minister Keir Starmer has said the government is not going to go ahead with a planned increase in fuel duty this year.

Chancellor Rachel Reeves announced at last year’s Budget that she would phase in a 5p rise in fuel duty from this September. It would go up by 1p that month, a further 2p in December and another 2p in March 2027.

We now know fuel duty will be frozen until 31 December 2026.

The 5p cut in fuel duty was originally brought in by the last Conservative government in March 2022 and was supposed to be in place for a year. Fuel duty raised £24.3bn last year, external and the Treasury has estimated, external the cost of the 5p cut was about £2.4bn a year.

We estimate that extending the freeze to the end of the year will cost about £240m, although rising fuel prices means the government is getting more revenue from the 20% VAT that is charged on fuel.

Image source, House of Commons

• PM Keir Starmer kicked off this week's PMQs by announcing that the government would be postponing plans to increase fuel duty by 5p due to events in the Middle East
• Conservative leader Kemi Badenoch replied by thanking the prime minister "for the U-turn", before asking why Labour MPs voted yesterday to ban new British oil and gas licences
• Starmer hit back, saying oil and gas would be "important" for years to come, but insisted renewables are the only way to "take control"
• Badenoch then shifted focus to the government's decision to water down some sanctions on Russian oil products, accusing Starmer of "choosing to buy dirty Russian oil"
• The PM argued that the new sanctions went "well beyond" existing ones and are being phased in in the same way the Conservative government did - before accusing the Tory leader of playing "party politics" on the topic of Ukraine
• Rounding off the back and forth, Badenoch said the PM was "hanging by a thread" and referenced potential leadership challenges from Wes Streeting and Andy Burnham. Starmer failed to address the questions over his leadership, instead outlining the UK’s shorter NHS waiting lists and a fall in inflation, which was announced this morning

Brian Wheeler
Reporting from the House of Commons

A big sigh and a shake of the head from Green MP Hannah Spencer, as the PM answers her question on whether MPs should be allowed to “drink on the job” with an attack on her party leader.

Another Westminster custom the new MP is having to get used to…

Harry Farley
Political correspondent

Labour MPs have been relatively subdued during this PMQs, perhaps unsurprisingly given all the rumpus going on around the party’s future leadership and direction.

But Keir Starmer wins the biggest cheer of the day for his rebuke to the Green MP’s Hannah Spencer’s question about drinking on the parliamentary estate.

"The Greens think their leader walks on water. It turns out he lives on water and doesn't pay his council tax," he says.

It comes after the Green Party admitted Zack Polanski may have failed to pay his council tax for the houseboat he was, until recently, living on.

Spencer’s question is part of a wider campaign she has to oppose the ability of MPs to drink alcohol during the working day in Parliament.

That hasn’t gone down well with many MPs, who argue Parliament’s bars and restaurants are an important place for MPs to relax and they help to foster cross-party working.

One MP anticipated Spencer's question and shouted "anyone for a pint" as she stood up.

Starmer avoided taking a side and ducked the question.

Starmer came prepared to a potentially tricky PMQs with two big announcementspublished at 12:38 BST

12:38 BST

Chris Mason
Political editor

Not putting up fuel duty in the autumn and giving hauliers a 12-month break from road tax is the government’s attempt to address the spiralling cost of fuel because of the war in the Middle East.

It’s part of a wider set of announcements expected today and tomorrow given the fear of wider spiralling prices in the coming months.

The exchanges between Conservative leader Kemi Badenoch and Keir Starmer focused on the intricacies of the sanctions regime imposed on Russia, as some are loosened on Russian oil refined into diesel and jet fuel.

Starmer insisted overall sanctions were getting tougher and the government’s approach today was consistent with what other governments have done and what the previous Conservative government did here.

Badenoch sought to draw a connection between this and the government’s unwillingness to fully exploit the oil and gas in the North Sea. Starmer insisted oil and gas was being taken from the North Sea all day every day and would be for years to come.

Taking a step back, today’s announcements and the ones to come are an indicator of how keenly aware the cost of living pressures already are for millions of families - and how they may still get more difficult.

Davey uses his second question to say Greater Manchester Mayor Andy Burnham and former Health Secretary Wes Streeting, seen as potential leadership challengers to Starmer, have ruled out any support for Britain joining the customs union with the EU in the past few days - despite the fact, he says, that it would "boost growth".

He asks the prime minister if he is relieved to finally have something he can agree with his colleagues on.

Starmer responds by saying he has spent the last two years negotiating "serious" trade deals, including with the EU, India and United States, which are "vital" for important sectors of the economy.

Image source, House of Commons

Next up to speak in the Commons is Lib Dem leader Ed Davey.

He addresses UK and US cuts to international aid programmes amid a dangerous Ebola outbreak in Africa.

Despite this, Davey says, there are rumours that the government is planning further aid cuts - will the prime minister rule this out?

Starmer says the government is committed to overseas aid, which he accepts was cut to increase defence spending. But he says this was "mitigated" by other measures the government put in place.

• For context: An Ebola outbreak in the Democratic Republic of Congo has been declared a public health emergency of international concern, by the World Health Organization (WHO). The latest outbreak is challenging because it involves a rare strain of Ebola for which there is no vaccine.

Brian Wheeler
Reporting from the House of Commons

Kemi Badenoch struggles to be heard over the noise from Labour MPs as she deploys her Labour leadership attack lines.

Starmer’s announcement on fuel duty has taken the heat out of this.

Image source, House of Commons

Badenoch says she is asking Starmer specifically about new oil and gas licences, which she says Labour voted against on Tuesday - accusing the PM of "nationalising steel" and "imposing price controls in the supermarket".

Starmer is "hanging by a thread", she says, with "fake support from his backbenchers".

Labour MPs have been "huddled in the corridors... talking about Burnham and Streeting", Badenoch says, adding that "the worst part is they aren't getting rid of [Starmer] over his terrible agenda" but because "they want a better salesman".

She says it doesn't matter who replaces Starmer, because "the real problem is the Labour Party".

Starmer responds by outlining figures released last week which he says shows the UK has the "fastest growing economy in the G7", and "the biggest fall in waiting lists for 17 years".

He says inflation has also come down "more than expected", but does not address questions over his leadership.

Brian Wheeler
Reporting from the House of Commons

Starmer is getting very vocal support from Deputy PM David Lammy and Foreign Secretary Yvette Cooper, sat on either side of him on the front bench, as Kemi Badenoch accuses him of being patronising.

Wes Streeting shows no emotion as he watches from his new perch on the backbenches.

Image source, House of Commons

Back in the Commons, Badenoch says Starmer's "pompous tone" does not cover the fact his policy is wrong.

She says more people are buying Russian oil because British oil isn't being drilled - adding she can't believe even when he "has nothing to lose" he continues to defend banning new British oil and gas licences.

She then says that in April, there was the single biggest drop in employment ever since the pandemic, asking: "Why is he doing everything to save his job and nothing to save other people's?"

Starmer repeats comments that there is drilling in the North Sea and that the government is supporting existing oil and gas fields through their lifespan, and recently introduced changed to allow neighbouring fields to be exploited.

He reiterates that people are "fed up" with prices going up due to international conflicts and says the last government didn't take control of bills.