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Car tax: Fuel duty likely to be cut in Sunak’s spring statement today

Mr Sunak stated the cut was equal to £5billion of help to the UKs motorists and slightly than lasting till August as predicted will stand in place till March subsequent year. He has been underneath large strain to act as the price of dwelling soars and inflation climbs above eight p.c in the UK. Petrol and diesel are at historic highs and plenty of worry that the 5p per litre cut is merely a drop in the ocean.

Speaking in his statement today, Rishi stated: “I’m going to help motorists. Today I can announce, for only the second time in 20 years, fuel duty will be cut.

“Not by one, not even by two, however by 5p per litre. The largest cut to all gasoline duty charges ever.

“While some have called for the cut to last until August, I have decided it will be in place until March next year – a full 12 months.”

He added: “It will take effect from 6pm tonight.”

Drivers in the UK at the moment pay 57.95p a litre on gasoline, one of many highest ranges of tax in the world.

More than 50 p.c of the price of petrol in the UK is made up of gasoline duty and VAT.

Torsten Bell, Director of the Resolution Foundation which protects dwelling requirements informed BBC Radio 4’s Today Programme: “I think a fuel duty cut is now almost inevitable. We’ve seen prices at the pump go up by 40p over the last year.”

While the Shadow Chancellor Rachel Reeves warned: “Even a 5p reduction in fuel duty will only reduce filling up the car with petrol by £2, so I don’t think that really rises to the scale of the challenge we face at the moment.”

READ MORE: New diesel rules coming into effect in April is a ‘money grab’

Any cut in the duty made today is likely to be temporary and comes as the Chancellor is resisting calls to scrap a rise in National insurance contributions next month.

Former cabinet minister Sir John Redwood said: “Taking a bit off petrol and diesel is fine and welcome, but if that’s all there is it will be too little, too late.

“We are facing a very big cost of living squeeze – perhaps the biggest of our lifetimes – and we need to be cutting taxes now to relieve that pressure.

“The Chancellor needs to back off all the tax rises he was planning – the national insurance rise should not go ahead, we should cut VAT on fuel, and we should cut it on energy saving products like insulation too.”

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Mr Sunak informed the BBC on the weekend: “I want (that) Government might remedy completely each drawback and that I might absolutely defend individuals in opposition to all of the challenges that lie forward.

“I can’t do that, but what I would say is, I will stand by them in the same way that I have done in the past couple of years.”

“Obviously I can’t comment on specific things.

“But what I would say, I understand that…I have a rural constituency, people are incredibly reliant on their cars and this is one of the biggest bills that people face, watching it go up.

“We’re all seeing that, when we’re filling up our cars. I get that, that’s why we’ve frozen fuel duty already.”

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