A potential rule change at all UK petrol stations could save drivers £50 each, as campaigners urge the Chancellor to scrap plans to hike fuel duty. Howard Cox, founder of FairFuelUK, has spoken out amid reports that Rachel Reeves is set to maintain the current freeze on fuel duty, rather than increasing it as previously expected.
Drivers 'Crippled' by Road Costs
Howard Cox, founder of FairFuelUK, has spoken out amid reports that Ms Reeves is set to scrap plans to hike fuel duty. Fuel duty was first frozen by the Tories in March 2022, and the Labour Chancellor had extended this hold until the end of August this year, but had refused to say whether she would push it further.
Howard said: “This clueless, bankrupting net-zero-driven Government remains stuck in a state of torpor, keeping the UK economy virtually stagnant.”
Motorists save about £50 per year per car, with cumulative savings since the 5p cut was introduced reaching £250, according to government estimates.
Campaigners Call for Action
Howard added: “Time and again, over 16 years of campaigning, we have shown that lower fill-up costs deliver more tax to the Treasury by boosting other tax revenue streams. More to the point, the current cost of petrol, particularly diesel, is crippling motorists' and small businesses’ ability to spend in the economy. When will these ignorant Treasury politicians understand that more money in people’s pockets drives growth? For goodness sake, cut all fuel taxes now!”
At the end of March, a cabinet minister appeared to rule out an extension to the freeze, saying there was “no need to act” on fuel duty. Education secretary Bridget Phillipson had said: “I’m not going to commit months ahead of time when there isn’t a need to act right now, because those protections remain in place.”
Last week, the Chancellor signalled that she would set out plans to tackle the cost of living. “Because of today’s numbers and the growth that we’ve seen in the economy, next week I will be able to set out more plans to support families and businesses with the challenges that have come from this conflict in the Middle East. I look forward to setting those out next week,” she said.
The reversal is expected to cost the Treasury £2.4bn.
