Government tipped to raise fuel duty to ‘plug | Tech News

Labour might raise petrol and diesel fuel duty costs quickly to help “plug the funding gap”, in accordance to electric vehicle consultants. Specialists at The Electric Car Scheme predicted Labour might make financial savings by “getting rid of” fuel duty freezes.

Rates haven’t elevated for 13 years with motorists having fun with hefty financial savings on the fuel pumps since.

Officials on each side of the political spectrum have held off raising the charges regardless of the transfer probably to secure hundreds of thousands of kilos in further revenues for the Treasury.

It might make fuel duty a main subject in the summertime within the run-up to Labour’s second Autumn Budget by the top of the yr.

The Electric Car Scheme stated: “Fuel tax has been frozen since 2011, at an estimated total cost to the treasury of £66 billion, keeping fuel cheaper and carbon dioxide production high.

Transport is the UK’s number 1 emitter of the greenhouse gas, making this a costly, unhealthy and environmentally damaging policy.

“The government could help plug the funding gap that has been a key message over the past month or so by getting rid of this freeze.

“Not to mention the cost to the NHS of poor air quality and extra funding freed up by ending this subsidy.

It means fuel duty remains at the current 52.95p rate with the charge levied at petrol and diesel directly at the pumps.

This included maintaining the 5p cut on fuel duty that the Conservatives introduced back in 2022.

In a statement to Express.co.uk, HM Treasury said: “We do not comment on speculation around future changes to tax policy. Our plan for change is putting more money in the pockets of working people.

“We extended the fuel duty cut, saving drivers £3 billion this year, and increased the National Living Wage giving a pay boost of up to £1,400 a year for millions of eligible workers”.