Fuel duty expected to be cut as cost of living continues to spiral
Fuel duty is expected to be cut by the Chancellor this week, as the cost of living crisis continues to spiral and onlookers call for political intervention.
Soaring energy bills and inflation, as well as record high petrol prices, have significantly dampened consumer spending power amid the UK’s post-pandemic and Brexit recovery.
Chancellor Rishi Sunak is planning to use his spring statement on Wednesday to haul in an at least five per cent cut to fuel duty, The Times first reported.
Sunak on Saturday described fuel duty, which currently stands at 58p per litre, as “one of the biggest bills that people face”.
It has been anticipated that a cut would be time limited, as the government’s net-zero pivot has landed politicians in a sticky position between trimming fossil fuel levies and the soaring costs of living.
The Chancellor is also thought to be considering tweaking his national insurance hike, by raising the threshold at which people begin paying.
The move would mean around 150,000 people dodge the hike altogether.