Labour tipped to hike fuel duty costs for petrol | Tech News

Labour Chancellor Rachel Reeves has been tipped to raise fuel duty by up to 10p per litre in a potential blow to petrol and diesel drivers. Robert Salter, a director at Blick Rothenberg, warned raising costs may very well be a consequence of deliberate will increase in defence and transport spending.

The skilled confused the Government may pay for a deliberate £6billion defence spending bundle by taking financial measures equivalent to lowering tax reduction on pensioners. Mr Salter confused the Government may prohibit Inheritance tax thresholds or raise company tax. But, he admitted fuel duty was one other lever officers may faucet into in a bid to generate income.

Fuel duty brings in round £25billion per 12 months and is a vital source of income for the Treasury.

However, Blick Rothenberg warns that an finish to the 5p freeze and an further raise may very well be on the horizon on the Autumn Budget later this 12 months.

Robert stated: “Another option is to end the ‘temporary’ 5p per litre cut to fuel duty, which was introduced in 2022, and was extended in Ms Reeves’s first budget.

“It is now due to finish in March 2026 and should now come to an finish. The ‘momentary easement/ is presently costing ca. £2billion every year.

“The Government could go further and raise it by say 10p per litre, which would potentially raise £4bn.

“But virtually, the Government wants to take a look at different choices for raising income from motorists, as fuel duty will likely be coming down over the subsequent few years, as more and more people transfer to e-vehicles or at the very least hybrids.”

Robert warned there was a “risk” that mountaineering fuel duty charges too sharply may speed up the transition to electric autos.

However, if everybody adopted the new fashions the Government may stand to lose vital income with an different to fuel duty not but mapped out.

Robert prompt the Government may contemplate placing in different plans to raise equal revenues equivalent to toll roads.

The Government continued the Conservatives’ fuel duty freeze on the final Autumn Budget back in October 2024.

Any replace on fuel duty charges is probably going to come on the subsequent Autumn Budget with no date but to be confirmed.

Despite this, it’s anticipated that the Chancellor will current her newest assertion round October and November 2025.