Rachel Reeves has left a nasty surprise for the | Tech News

Rachel Reeves has completely set John Healey up to fail. The new Chancellor has a huge resolution to make that can have an effect on tens of millions of petrol and diesel drivers in the UK. The clock is ticking. In Number 11, Healey now has the destiny of each combustion engine proprietor in his arms as the ‘will he, won’t he’ round fuel obligation price hikes kicks into life.

Rachel Reeves did a U-turn on deliberate fuel obligation will increase for this September, however didn’t roll back on any modifications for subsequent yr. It implies that the deadline is fast approaching, with fuel obligation charges at the moment set to rise from January 1, 2027.

As issues stand, a 3p per litre increase is set to come back into impact from January, adopted by a 2p rise in March. This would see costs increase from the present 52.95p per litre to the earlier 57.95p per litre, the price earlier than the introduction of the Conservatives’ 5p cut in 2022.

Mr Healey’s document on the challenge will definitely make good studying for nervous drivers. Back in 2004, as financial secretary, Healey advised MPs that the Treasury took obligation ranges “very seriously” as petrol prices climbed in the direction of 80p a litre. 80p! Oh, these halcyon days.

Months later, Chancellor Gordon Brown froze fuel obligation charges in his December 2004 Budget. More of the similar this yr, John. This week, new Prime Minister Andy Burnham advised ministers that his premiership could be a cost-of-living authorities.

The appointment of Mr Healery has additionally been seen by some as a means for Number 10 to take nearer control of the Treasury. If that is appropriate, it will be exhausting to see fuel obligation rises going forward as deliberate in simply a few months.

However, some of Mr Burnham’s well-liked insurance policies, resembling a VAT cut on electrical energy and bus fare reductions, will take money out of the coffers. Last yr, it was estimated that a continued freeze on fuel obligation would cut tax receipts by round £3.8billion a yr.

With Labour additionally dedicated to an electric-car transition, reversing petrol and diesel costs to their ranges simply 4 years in the past could seem too interesting to disregard.

Labour might make the argument that motorists aren’t shedding something, that the 2022 5p cut was a short-term measure and that the need for it has handed. The downside is, the man on the avenue or behind the wheel in all probability doesn’t know or care.

The headlines will learn ‘fuel duty increase’, and that can probably be enough for swathes of UK motorists to show their backs on John Healey. Oh, what a place to be in. Shouldn’t Reeves have sorted out this mess earlier than she headed for the exit door?