Rishi Sunak warned fuel tax hike will hit vital pandemic home deliveries

RISHI Sunak has been warned a Budget hike in fuel tax will hit vital pandemic home deliveries.

A rise of 3p a litre would raise £1billion for the Treasury — but also cost van drivers a punishing extra £250 a year to fill up.

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Rishi Sunak has been warned that a fuel duty hike will hit the pandemic recovery

Campaigners claim it would be the “ultimate betrayal” for delivery workers who have kept supplies flowing in lockdown.

It would also lead to price increases for online sales — with nine in ten households now dependent on home deliveries.

The Chancellor is considering axing the nine-year freeze on fuel tax in a bid to help pay off the £280billion lockdown bill.

Howard Cox, of FairFuelUK, said: “The impact on home deliveries of a fuel duty rise will be devastating and slow our post-pandemic economic recovery.”

Mr Sunak is also considering a rise in corporation tax. 

But John Longworth, of the Independent Business Network warned: “At a time when the country is facing its greatest economic crisis in living memory, the Government should be looking to cut corporation tax rather than raising it.”