Drivers urged to fill up with full tank of petrol before 12.30pm Wednesday
Drivers have been urged to visit a supermarket and fill up with a full tank of petrol or diesel before Wednesday. The budget is set to take place at 12.30pm on Wednesday 30 October amid reports the Labour Party government could hike fuel duty.
Paul Barker, editor of the motoring publication Auto Express, warned: "The reported 7p rise in fuel duty would be a major blow to drivers already struggling with the cost of living. With the average car needing refuelling every eight days, this hike would increase the cost of each fill-up by nearly £4 - around £175 per year in extra fuel expenses - making it harder for drivers to keep up with their regular expenses, particularly those who rely on their cars for work or daily commuting."
Sources briefed on the chancellor’s thinking told The Financial Times that they believe the cut will take effect from next year. Additionally, the Treasury department has urged Ms Reeves to end a 13-year freeze on fuel duty, according to the paper.
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As Ms Reeves seeks to address a £22bn “black hole” in public spending announced in late July, the Campaign for Better Transport estimates that ending the 5p cut and reinstating annual inflation-linked rises could generate £4.2bn in revenue for the Treasury.
Motoring groups have warned that such a move would be “catastrophic for many”. On Friday, the Road Haulage Association (RHA) urged Ms Reeves to maintain the current freeze, arguing that businesses are already struggling to cope with squeezed profit margins.
“Firms are under pressure as it is, and such a rise in fuel duty would be catastrophic for many, particularly Britain’s small and medium enterprises,” said Richard Smith, managing director of the RHA. A Treasury spokesperson commented: “We do not comment on speculation around tax changes outside of fiscal events.”