Rishi Sunak and Jeremy Hunt warned not to clobber hard-pressed motorists with fuel duty hike to plug £50bn hole
HARD-PRESSED motorists must not be hit by fuel duty increases to help plug the £50billion hole in the country’s finances, MPs and campaigners say.
Prime Minister Rishi Sunak and Chancellor Jeremy Hunt have warned that all taxpayers will have to cough up more to help balance the nation’s books.
Options presented to ministers ahead of the “rough” and ”eye-watering” November 17 Budget include putting up fuel duty.
Motorists benefited from a 5p per litre cut for petrol and diesel cars earlier this year.
But the 12-month measure only lasts until the end of March. The cut — introduced by then-Chancellor Mr Sunak in the wake of The Sun’s Keep It Down campaign — is worth around £5billion to hard-working families and businesses.
Conservative MP Craig Mackinlay last night said: “I do recognise the Chancellor’s overriding imperative to balance the nation’s books, but never again must motorists be seen as an easy cash cow.”
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Fellow Tory Greg Smith, who sits on the Transport Select Committee, said: “Prices at the pumps are getting no better, hitting individuals, families and businesses like our world class haulage sector. It is vital that fuel duty is kept down, if not cut further, as both a counter inflationary measure and to keep Britain moving.”
Campaigner Howard Cox, founder of FairFuel UK said: “Crippling petrol and especially diesel prices remain the biggest angst for drivers and businesses.
“At a stroke of Jeremy Hunt’s pen, slashing one of the world’s highest taxes will deliver economic growth, more business investment, higher wages and increased consumer spending.”
The Chancellor is expected to confirm a “fiscal drag” will whack voters for years to come in this month’s autumn statement.
Mr Hunt will freeze income tax thresholds and weigh up others — like the National Insurance threshold — to bring in billions more for the Exchequer and help plug the huge black hole in Britain’s finances.
Meanwhile, Downing Street said the NHS will be prioritised by Mr Sunak in return for reform amid wider cutbacks.
He discussed the matter at the weekly Cabinet meeting yesterday, indicating the health service would be exempt from cuts but improvements must be found.
HOW CHANCELLOR COULD FIND THE MONEY
STEALTH TAXES: Extending the freeze on tax thresholds would raise £5billion but put millions on higher rate.
WINDFALL TAX: Raising energy giants’ windfall tax from 25 to 30 per cent would be popular with voters.
AXING TRIPLE LOCK: Hiking pensions with earnings not 10.1 per cent inflation would hit OAPs but save £7billion.
BENEFITS CUT: Uprating benefits with earnings not inflation would save £5billion but is politically toxic.
REINSTATE NICS HIKE: Reinstating 1.25 per cent original National Insurance hike would raise £13bn but hit workers.
HIKE FUEL DUTY: Ending the 5p fuel duty cut in March and hiking the tax with inflation would save £5billion.
It is understood ministers see money being saved half through spending cuts and half in tax rises.
Defence Secretary Ben Wallace will hold a meeting with Mr Hunt this week to discuss the Autumn Budget, seeking further funding to protect his department from inflation over the next two years.
Former PM Liz Truss committed to spending three per cent of GDP by 2030 on defence, but No 10 has been tight-lipped on the pledge since she was ousted.
Mr Wallace said he is confident there is a “recognition defence is moving up the funding priority ladder”.
'A freeze on duty’s essential'
By Jonathan Gullis, MP for Stoke-on-Trent North
I AM proud to have supported the Energy Prices Act which will cap most household energy prices to £2,500 rather than the £6,000 they were supposed to be this winter.
However, there is still an elephant in the room: the rocketing price of fuel.
Petrol and diesel prices hit record highs this summer and, according to the RAC Fuel Price Watch, around 43-44 per cent went to the Exchequer.
I understand the Prime Minister and Chancellor have tough calls to make in the weeks ahead.
But I urge them to commit to freezing fuel duty again so we don’t leave motorists out in the cold. Small businesses and hardworking people rely on their vehicles.
Fuel prices are a key reason for the surge in the cost of living.
It is vital we keep Britain moving — so I am happy to back The Sun’s Keep it Down crusade.