British drivers and businesses are bracing for a potential financial hit as the government considers the first fuel duty rise in 15 years. The change, which could be announced in Chancellor Rachel Reeves' Autumn Budget this Wednesday, has sparked severe warnings from the motoring campaign group FairFuelUK.
Campaigners Warn of 'Political Disaster'
Howard Cox, the founder of FairFuelUK, has issued a stark warning to the Labour government, stating that a hike in fuel duty would be a "political disaster". He argues that maintaining the freeze is vital for economic stability. "Keeping fuel duty frozen will be one of the best fiscal stimuli for this unpopular Government to restore confidence," Cox shared. "Hiking it could be the final political blow in a succession of self-inflicted disasters."
The group has heard from reliable Treasury sources that the budget may introduce a 10p per litre increase. This would effectively reverse the temporary 5p cut introduced by Rishi Sunak during the Covid pandemic and add a further 5p.
The Economic Impact of a Fuel Duty Hike
FairFuelUK strongly refutes arguments from some quarters that unfreezing the duty could generate over £3 billion a year for the treasury, labelling such claims "utter nonsense". The campaign insists that the 15-year freeze has been a key factor in keeping the economy afloat by leaving more disposable income in drivers' pockets and keeping business transport costs manageable.
The organisation warns that the proposed increase is a regressive tax that would disproportionately affect low-income families. They have provided a stark breakdown of the potential costs for consumers and businesses:
- Filling up an average family car would cost an extra £6.60.
- An average Transit van would incur £15 more.
- A large Heavy Goods Vehicle (HGV) would face an additional £70 per fill.
FairFuelUK emphasises that road transport is the lifeblood of the nation, essential for construction, food deliveries, medical support, and community cohesion. They warn that any increase will hinder economic growth, fuel inflation, and impact business investment.
What Happens Next?
All eyes are now on Chancellor Rachel Reeves as she prepares to deliver her Autumn Budget on Wednesday. The decision on whether to end the 15-year freeze on fuel duty will have immediate and far-reaching consequences for millions of drivers and businesses across the United Kingdom. The outcome will reveal the government's priority: short-term treasury gains versus the long-term financial health of households and the economy.
