Rachel Reeves is planning a rule change for drivers that could cost families an eye-watering sum from September. The Labour Party Chancellor has faced criticism over a plan to hike fuel duty and reverse a cut, amid the ongoing Middle East war.
Shadow Treasury minister attacks fuel duty hike
Shadow Treasury minister James Wild has attacked the government, warning in the Commons that Labour's plan to increase fuel duty by 5p would end up "costing families £150 a year and hauliers £2,000". He said of Ms Reeves: "There's no such thing as Government money. There's only taxpayers' money… will she actually help households and businesses and scrap this fuel hike?"
Campaigners call for VAT reduction on fuel
With an average tank of petrol now costing £86.50 — up £13.50 since February 28 — campaigners this week said they want the Government to halve VAT on fuel to ten per cent. There are also calls to scrap a 5p-a-litre fuel duty increase from September.
Treasury minister defends government action
Treasury minister Gareth Thomas has defended Ms Reeves in the Commons this week, saying the government has already taken action on fuel affordability at the pump. "At the Budget last year, the Government extended the 5p per litre cut for a further five months, and we've also cancelled the increase that would have otherwise taken place in line with inflation," he said. Mr Thomas added: "On this side of the House, we are fiscally responsible. We will make sure that we continue to get borrowing down in a sustainable way, as we did over the last financial year, with borrowing falling by £20billion."
RAC calls for lower pump prices
The RAC’s Simon Williams said: “Pump prices aren’t falling at the rate our analysis of wholesale data indicates they should. The cost of both fuels on the wholesale market is still lower than it has been, particularly for diesel — so drivers really ought to see some cheaper prices in the coming days.”
