CASH-strapped Rachel Reeves has been hit by a rear-guard push to scrap a lifeline 5p fuel duty cut.
Treasury insiders say the Chancellor is “boxed in” by pledges not to hike income tax, VAT or national insurance — and as a result faces huge pressure to cave in on petrol and diesel prices.
Rachel Reeves has been hit by a rear-guard push to scrap a lifeline 5p fuel duty cut[/caption]
Treasury insiders say the Chancellor faces huge pressure to cave in on petrol and diesel prices[/caption]
But today the industry warns such a move in this month’s Budget would wipe out 5,000 jobs and push up prices across the UK due to increased transport costs.
The Sun has successfully campaigned to hold down fuel duty for more than a decade.
Former PM Rishi Sunak slashed 5p off fuel duty in 2022 when he was Chancellor.
Each Budget since has kept the reduced rate of 52.95p per litre.
Now, fresh analysis from the Road Haulage Association shows if that went up 5p Britain’s GDP would be slashed by at least £430million each year after five years — cancelling out most of any extra revenue.
RHA boss Richard Smith said: “With firms operating on average profit margins of just two per cent, and a record number of insolvencies last year, increasing fuel duty will only cause more hardship.
“The UK already has abnormally high fuel duty.
“We urge the Government to maintain the freeze — otherwise there will be dangerous consequences for the many thousands of small and medium-sized businesses, including those operating lorries, coaches and vans.
“This is why we’re backing The Sun’s Keep It Down campaign.”
