Budget 2023: Chancellor announces fuel duty will be frozen
Petrol and diesel drivers could be set for a major win as Jeremy Hunt looks set to continue the fuel duty freeze.
The Treasury had put pressure on the Chancellor to hike the petrol pump tax but Mr Hunt appears to have stood firm.
The MP for South West Surrey will protect the 5p tax cut on motorists in his Autumn Statement set to be read out in two weeks, according to The Sun.
One source said: “As ever there was internal pressure to raise revenue this autumn from fuel but Jeremy has said no.”
The news will provide a break to motorists who are already battling increasing costs at the pumps amid the cost-of-living crisis.
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Responding to the news, FairFuelUK founder and Reform UK London Mayoral candidate Howard Cox was thrilled.
He posted on X, formerly Twitter: “Our lobbying and campaigning for the 13th year running has stopped any fuel duty rise again.
“Thanks to the thousands of #FairFuelUK supporters who made this happen.”
Former Chancellor Rishi Sunak introduced a temporary cut to fuel duty in his Spring 2022 budget.
The cut was announced just weeks after Russia’s invasion of Ukraine which had pushed up pump prices to “unprecedented levels”.
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The move was only expected to last 12 months but Mr Hunt announced the continuation of the scheme in March.
According to the Telegraph, Treasury analysts had told Mr Hunt that he needed to raise fuel duty by at least 2p.
This was necessary in order to claw back £5billion the Exchequer is losing each year due to Mr Sunak’s previous tax cut.
However, Tory veteran Sir John Redwood called on the Government to go further. The MP for Wokingham added: “We need a tax cut. We need it for the economy.
“I would take the five percent VAT off domestic fuel for the next year and I would take a similar five percent off the price of petrol and diesel at the pumps by cutting fuel duties.”
John O’Connell, chief executive of the TaxPayer’s Alliance also called for the Government to make the move permanent as families continue to struggle.
He commented: “Motorists will breathe a sigh of relief if fuel duty is held at current levels.
“But despite years of freezes, the UK has some of the highest duties on petrol and diesel in Europe, heaping pressure on household bills. The chancellor should make the fuel duty cut permanent to ease the burden on drivers.”
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