Rishi Sunak could increase fuel duty by 5p to help pay for coronavirus crisis


FUEL duty could be increased by up to 5p by Chancellor Rishi Sunak.

He is considering ending a ten-year freeze on the tax in his autumn ­Budget to help pay for Covid-19.

Rishi Sunak is considering hiking fuel duty in his autumn Budget

The move would automatically add 2p a litre at the pumps, as the price would go up in line with inflation. But a Treasury source says it has plans for an extra 3p on top.

Fed-up motorists urged the Chancellor to scrap plans for the tax hike.

Critics said it would be “madness” to raise the cost of driving while the Government tries to coax people back to the office. 

Senior Tory MP Robert Halfon warned: “Now is not the time to clobber workers, families, white van men and women and our public services with a fuel duty increase.”

The Chancellor is looking to pay for the Government’s Covid-19 response

Howard Cox, founder of FairFuelUK, said: “The highest-taxed motorists in the world will be seething with injustice if they are used as fall guys for the recent taxpayer-funded cheap Eat Out scheme and £2billion of new cycle lanes.” 

A Treasury source said officials were also told to look at the impact of a double-digit increase as part of more extreme measures that could be used to raise funds.

But a 5p hike was put in the “realistic” category of options.

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