Thu. Sep 19th, 2024
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RACHEL Reeves is being warned not to raise fuel duty in the Budget as it would lead to a spike in inflation, campaigners say.

The Chancellor faces deafening calls to maintain the 5p-a-litre temporary cut introduced after Vladimir Putin’s invasion of Ukraine in 2022.

Rachel Reeves is being warned not to raise fuel duty in the Budget as it would lead to a spike in inflation

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Rachel Reeves is being warned not to raise fuel duty in the Budget as it would lead to a spike in inflationCredit: PA
Howard Cox said: 'Fixing the foundations of the economy means not imposing needless tax levy rises on consumers, logistics, and small businesses'

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Howard Cox said: ‘Fixing the foundations of the economy means not imposing needless tax levy rises on consumers, logistics, and small businesses’Credit: Olivia West

Pressure is being heaped on the Treasury after inflation remained at 2.2 per cent yesterday — still above the two per cent target.

The warning comes after the success of The Sun’s Keep It Down campaign, which has helped freeze fuel duty since 2011.

Howard Cox, founder of FairFuelUK, said: “Fixing the foundations of the economy means not imposing needless tax levy rises on consumers, logistics, and small businesses.

“Labour’s uncharacteristic but welcome electioneering mantra will be at huge risk if Fuel Duty is hiked.”

Reversing the 5p cut and bringing back an annual inflation-style rise would bring £5billion to government coffers by 2028-29.

But Mr Cox said: “If such a punitive act is in the Budget, it will not only increase inflation but also put many vital haulage businesses and sole traders on the brink of bankruptcy.”

A Treasury spokesman said: “Following the spending audit, the Chancellor has been clear difficult decisions lie ahead.”

Brits face tax rises in tough Budget as Keir Starmer warns of ‘short term pain’ to ‘fix country’

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