Reeves accepts that the tax hike budget could hurt wage growth for workers

Simon Browning
Transport manufacturer

image source, EPA

The chancellor chose not to change fuel taxes after much speculation there would be changes that would increase the cost of petrol for UK drivers.

Reeves said: “To keep the 5p cut and freeze fuel duty again would cost more than £3bn next year. At a time when the fiscal position is so difficult, I have to be honest with Parliament, this is a substantial commitment to make.”

“We have come to the conclusion that in these difficult circumstances, while the cost of living remains high, increasing fuel duty would be the wrong choice for working people. It would mean a 7p per liter increase in fuel duty,” she added.

“So I have decided today to freeze fuel duty next year and I will keep the 5p discount for another year. There will be no higher taxes at the petrol pumps next year.”

Simon Williams, head of motoring body RAC, said drivers would breathe “a huge sigh of relief”.

“Eight in 10 drivers tell us they are dependent on their vehicles for the journeys they need to make, while 70% of commuters living in rural areas have no viable alternative to getting to work other than taking the car he said. .

“It is also worth remembering that even today, 56% of the total price of a liter of petrol is already tax in the form of fuel duty, and the VAT that is charged on top of that,” he added.