Fuel duty increase rumours attacked as changes could have a ‘large impact’ on families
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Fuel duty costs could rise by up to 1p per litre to generate an extra £295million in revenues from the pumps. Treasury officials are set to be targeting the fuel duty freeze which has been in effect for over a decade.
There were rumours fuel duty was set to increase in Rishi Sunak’s March budget before the pandemic affected the UK but the Chancellor did not act after pressure from many Conservative MPs.
Leading companies FairFuelUK have urged the Chancellor to not make British drivers the “fiscal fall guys” in a post-pandemic recovery.
Founder Howard Cox warned any increase would hit low-income drivers the hardest and could drive voters away from the Conservatives in future elections.
Mr Cox claims the UK has the highest taxed drivers in the world with a 70.5 percent fuel tax tax over both petrol and diesel.
This is higher than Slovenia on 70.2 percent and Italy and France who have tax rates just above 69 percent.
Mr Cox said: “Do not make the world’s highest-taxed drivers the fiscal fall guys in a post-pandemic recovery budget.
“And hiding behind a green driven agenda to hike a regressive tax will be disingenuous and hit low-income drivers hardest. Instead, put much more money into people’s pockets.
“The extra consumer spending to drive up GDP, and all that goes with it, will help the economy recover quickly, the environment long term, and restore confidence in our beleaguered Government.
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“But by hitting drivers more in their pockets will drive Tory voters away from the once popular Boris.”
Changes to capital gains tax, corporation tax and the pensions triple lock are all under consideration by the Treasury.
Updates will be needed in some areas to deal with a deficit expected to be over £300 billion this year.
It is expected the fuel duty savings since 2010 have helped save motorists an average of £1,200 across the last decade.
But despite the heavy investment the change may be for the Treasury, it is set to be unfavourable among families and voters.
Many warned against the move in March after fears it could have alienated traditional Labour voters who defected to the Tories in the December 2019 election.
Conservative MP Robert Halfron claims any changes to fuel duty costs would be an “unnecessary hike” in costs.
He warns that a “needless rise” will have a large impact on the cost of living for many families as they recover from the pandemic.
He said: “Don’t let the taxpayer millions that funded half-price meals in August, be partly paid for, using an unnecessary hike in fuel duty.
“Such a needless rise in this levy will impact badly on the cost of living for families, increase inflation, hit businesses and jobs hard.
“It will even swell costs for our hard pressed public services, including the NHS.”
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