Chancellor Jeremy Hunt hints at possible end to fuel duty freeze
UK drivers have been put on notice that the fuel duty freeze, which has been in place for the past year, may be abandoned in the near future. Chancellor Jeremy Hunt has stated that he will "look at that decision again" in the run-up to the next election. The Treasury will assess the state of the public finances ahead of the Spring Budget early next year before making a final decision.
Possible rise in fuel duty to squeeze Whitehall budgets
The Office for Budget Responsibility (OBR), the budget watchdog, has forecasted that fuel duty will rise at 1p above inflation. If the fuel duty freeze is not continued, this increase will put additional strain on Whitehall budgets. Currently, a temporary 5p cut in fuel duty, introduced last year and maintained this year, is set to be reversed next March unless action is taken.
Chancellor's comments leave drivers uncertain
Jeremy Hunt, in March, expressed his desire to help hard-pressed drivers save money amidst the cost of living crisis. However, when speaking to MPs on Wednesday, he stated that a decision on the fuel duty freeze will not be made until the spring budget. He also emphasized that the freeze is not a permanent measure and may be subject to change.
Controversy over potential tax hikes
Howard Cox, founder of FairFuel UK, criticized the Chancellor's approach, stating that tax hikes, such as an increase in fuel duty, would be detrimental to the economy. He argued that the world's highest taxed drivers should not be seen as cash cows, but rather as a solution to lowering inflation, increasing consumer spending, and generating more growth tax revenue.
