Agony for drivers as they face 5p fuel duty rise in just months – despite Autumn Statement relief

THE threat of a 5p fuel duty hike in the Spring “hangs over motorists’ heads”, it emerged today.

The government’s economic watchdog revealed that a cut to National Insurance at yesterday’s Autumn Statement was only able to go ahead based on the idea that fuel duty will rise in the Spring.

The government’s economic watchdog today predicted that fuel duty will rise in March

Jeremy Hunt hailed his ability to slash taxes on new financial headroom worth £13bn.

But the Office for Budget Responsibility said £6.2bn from the pot comes from the assumption that fuel duty will rise.

The Office for Budget Responsibility said: “Headroom of £13bn is considerably lower than the average of £29.7bn that chancellors have held against their fiscal rules since 2010.

“Our forecast again incorporates £6.2bn of extra revenue in 2028-29 from the government’s stated policy of increasing fuel duty rates in line with RPI inflation and the reversal of the ‘temporary’ 5p cut.”

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Mr Hunt yesterday protected the 5p cut to the tax on motorists — despite Treasury pressure to hike it.

But the Chancellor hasn’t yet commented on the OBR’s prediction for Spring.

Howard Cox Founder of FairFuelUK and London Mayoral Candidate for Reform UK says: “The threat of Rishi Sunak’s Budget temporary 5p cut in duty being reversed in the 2024 Budget still hangs over motorists’ heads.

“That event could have been quashed completely today but the OBR assume the Fuel Duty rise with inflation is part of the anti driver Treasury’s fiscal forecasts.

“Increasing duty would be economic and political suicide!”

Thanks to The Sun’s Keep it Down crusade, fuel duty has been frozen at 57.95p since March 2011 and temporarily slashed by an extra 5p in 2022.

The 52.95p rate is due to expire in March next year – meaning a fresh battle against the hated tax is brewing ahead of the Budget in the spring.

Tory MPs and ministers have lined up to back The Sun’s campaigning to keep fuel costs down.

It comes as petrol prices are as high as 182p in some parts, and diesel costing an average of 157.78p.

At the March Budget Mr Hunt said: “I know how much Sun readers are feeling the pinch right now.

“Whether you drive a van, a hatchback or a people carrier I know how much you need to be on the road.

“Keeping it down means hard-working people will have an extra £100 this year without having to cut down using their vehicle.”

   

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