Warning of new ‘war on motorists’ as it emerges fuel duty could rise to fill Budget black hole
The Chancellor has not ruled out increasing fuel duty in the next Budget
FUEL duty could go up for the first time in SEVEN YEARS as the Chancellor desperately tries to plug a gaping hole in the Treasury’s coffers.
Sources yesterday claimed nothing had been ruled out by officials as they discuss options for November’s Budget.
An increase would take effect in April 2018 and mark the first rise to the eye-watering tax since January 2011.
Lobbyists today warned a duty hike would be “political suicide.”
And powerful Tory backbencher and fuel duty campaigner Rob Halfon told The Sun: “Any rise would hit hard-working motorists and small business.
“We should be reducing the burdens on motorists - not increasing them.
“The war on motorists has to end.”
The Chancellor is believed to be considering a duty rise along with higher council taxes on Britain’s biggest homes as he seeks to raise revenue.
Officials are also modelling how much could be saved by delaying a cut to corporation tax for a year.
Mr Hammond may also delay plans to increase the basic income tax allowance to £12,500 - a key pledge of the former Tory government.
The Tories have been under intense pressure to find the money to end the public sector pay cap and invest in schools and the NHS.
Tory backbencher Alec Shelbrooke earlier this month pointed out that fuel duty would have to rise by as much as 5p per litre to hand public sector workers a pay rise.
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George Osborne cut fuel duty in March 2011 under huge pressure from the Sun’s ‘Keep It Down’ campaign.
It has been left unchanged ever since but remains among the highest rates in Europe. Taken together with VAT, 65p in every £1 spent on fuel goes to the Treasury in tax.
The AA last night warned a duty rise would force struggling families to cut back in other areas - hitting the high street.
The motoring organisation added that with the lower pound, the typical two-car family had already forked out £140 more on fuel in the past 12 months than the previous year.
Howard Cox, co-founder of FairFuel UK, said: “It would be political suicide to raise fuel duty and toxic taxes on hard working drivers and small businesses.”