Rachel Reeves, the Labour Party’s Shadow Chancellor, is facing intense criticism over a proposed fuel duty hike set to take effect in September. The plan to reverse a recent cut and increase fuel duty by 5p per litre is expected to add an extra £150 to annual fuel costs for families, with haulage companies potentially facing increases up to £2,000.
Shadow Treasury minister James Wild voiced strong opposition in the House of Commons, highlighting the impact on everyday taxpayers. “There’s no such thing as Government money. There’s only taxpayers’ money,” Wild asserted, questioning whether Reeves would reconsider the hike to support households and businesses struggling with rising expenses.
Fuel prices have soared in recent months, with the average petrol tank now costing £86.50—an increase of £13.50 since late February. Consumer groups and campaigners are calling on the Government to reduce the VAT on fuel from 20% to 10% to ease pressure on drivers. Additionally, there are mounting demands to scrap the planned 5p-per-litre fuel duty increase altogether.
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In response, Treasury minister Gareth Thomas defended the Government’s position, stressing measures already taken to alleviate fuel costs. “At last year’s Budget, the Government extended the 5p per litre fuel duty cut for five more months and cancelled the inflation-related increase,” Thomas explained. He emphasized the Government’s commitment to fiscal responsibility, noting a reduction in borrowing by £20 billion over the last financial year.
Meanwhile, RAC fuel spokesperson Simon Williams pointed out that while wholesale fuel prices have fallen, retail prices at the pump have not decreased correspondingly, especially for diesel. “Drivers should start to see some relief at the pump in the coming days,” he noted, though motorists continue to feel the pinch.
As the debate over fuel duty intensifies, families and businesses alike brace for the financial challenges ahead amid broader economic and geopolitical uncertainties.