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Pressure grows on Chancellor to keep fuel duty freeze

Pressure grows on Chancellor to keep fuel duty freeze
Emma Lunn
Written By:
Posted:
21/10/2024
Updated:
21/10/2024

Fuel duty is set to rise by up to 7p a litre as Chancellor Rachel Reeves attempts to balance the books in next week’s Budget.

Between 2012 and 2022 successive Governments kept fuel duty frozen. In real terms, this meant rates fell by more than a third.

Then, in 2022, Chancellor Jeremy Hunt made the largest cut to fuel duty in recent history, reducing the main rate by 9%, from 58p to 53p per litre. That reduction was supposed to be a temporary response to higher energy costs, but it has been extended twice.

But speculation is now growing that Reeves will restore inflationary rises as well as ending the temporary cut, prompting campaigners to up the pressure on the Government.

A group of Tory MPs will deliver a fuel duty petition to Downing Street tomorrow (22 October), following emails to the Chancellor from more than 5,000 drivers over the weekend.

Conservative MPs, led by Saqib Bhatti MBE, and Fair Fuel UK founder Howard Cox, plan to deliver the 130,000-signature petition which calls for Reeves to continue the fuel duty freeze in the Budget next Wednesday (30 October).

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Last week saw 55 Tory MPs, two Lib Dem MPs, but only one Labour MP attend a Fair Fuel UK walk-in reception in Parliament. The campaign group has criticised more Labour MPs for not taking part, saying “the total disrespect for their constituents by ignoring their asks is shameful.”

The Tory and Lib Dem MPs who attended openly declared they supported either a cut or, at the very least, a freeze in fuel duty.

According to Fair Fuel UK, the Labour MP in attendance refused to comment but made a passing reference that his party colleagues had been whipped not to attend. Fair Fuel UK said: “This clearly indicates that Labour does not support motorists in their constituencies and will deliver a painful anti-driver Budget on Oct 30.”

‘Economic and political suicide’

Howard Cox, founder of Fair Fuel UK, said: “Along with the scrapping of the winter fuel allowance and an inevitable National Insurance increase on employers, a hike in fuel duty will be economic and political suicide.

“In opposition, Labour always supported a continuing freeze on fuel duty. Now in Government, they see the UK’s driver only as an easy cash cow to pay for their virtue signalling net zero fantasy.

“According to the Cebr, the long-term impact of increasing fuel duty now could lead to a staggering tax revenue collapse of more than 60% within five years and a fall in GDP. And in our recent opinion poll of over 80,000, 91.2% do not want fuel duty to be increased.”