Chancellor Rachel Reeves is expected to announce the end of a temporary 5p cut in fuel duty in her Budget this month. This decision is seen as part of fiscal recovery efforts to address a £22 billion black hole in public spending. Sources indicate the Treasury wants to conclude a 13-year freeze on fuel duty, with the Campaign for Better Transport estimating this could generate £4.2 billion for the Treasury. However, motoring groups warn that this could have dire consequences for many households.
More than 70 Tory MPs have expressed significant concerns over the potential increase in fuel duty, stating that it could hinder economic growth while further taxing families. They predict an annual increase of around £160 in fuel costs for households if the duty rises coincide with reinstated inflation-linked increases. The situation is delicate, as the ongoing economic challenges require careful navigation to avoid exacerbating the financial strain on families.
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