Politics · United Kingdom · 3 hrs ago

Think tank urges Chancellor to raise UK fuel duty gradually

Think tank urges Chancellor to raise UK fuel duty gradually

The Resolution Foundation has urged Chancellor John Healey to raise UK fuel duty rather than extend its freeze.

Fuel duty is a tax on petrol and diesel, and a cut introduced in 2022 has been extended repeatedly.

Under current plans, the tax is due to rise by 3p a litre in January, another 2p in March and 1p in April as the cut and freeze end.

The think tank says the increases should be smaller and spread over time, suggesting duty rise from 53p a litre now to 58p in 2028 and 66p in five years.

Fuel prices are already high, with diesel topping £2 a litre and petrol costing £1.75 at many forecourts, as conflict in the Middle East disrupts supply.

Critics say higher fuel taxes would strain working people and raise costs across the economy, including for food and deliveries.

Healey is widely expected to extend the cut and freeze in next week's Budget, but the think tank argues against doing so.

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What people are saying

Resolution FoundationThink tank
Ceding to demands to extend, yet again, the long freeze on Fuel Duty into next year is not the place to pour scarce resources.
via Daily Mail
Richard HoldenShadow Transport Secretary
The claim that this is somehow fairness is out of touch with the reality for working people up and down our country who rely on their vehicles for work, to get the kids to school or visit loved ones.
via Daily Mail
Howard CoxFounder of FairFuelUK
Higher fuel taxes do not just hit drivers, they push up the cost of food, deliveries, manufacturing, farming and services across the economy.
via Daily Mail