Millions of drivers face extra hammering at petrol pumps as incoming PM Andy Burnham looks for cash to fund his rush to build more council houses, it is feared
It is feared millions of motorists face an extra hit at the pumps as Andy Burnham seeks cash to fund his drive to build more social housing.
Sources close to the future Prime Minister have repeatedly refused to rule out the possibility that the incoming Government will raise fuel duty in the New Year and increase it every year, tying it to inflation.
In response, Mr Burnham promised that Labor would stick to its manifesto commitment not to increase income tax, National Insurance or VAT.
Fears have grown that drivers will be raided by Mr Burnham, who has so far revealed few details about his tax and spending plans and refused to take questions from journalists at press conferences.
He has already admitted that he might ‘ask a little more tax’ from people despite the tax burden approaching record levels.
Mr Burnham pledged to build the largest number of town halls ‘since the post-war era’ but did not say how it would be financed.
He has also promised to overhaul social care but has yet to set out how he will pay for it.
Fuel duty is currently frozen until January and has not increased for more than a decade, meaning Mr Burnham’s new administration faces the choice of whether to maintain the freeze.
Mr Burnham gave little indication of his tax and spending plans in his speech today appointing himself as the new Labor leader
Sources close to Mr Burnham have repeatedly refused to say whether he will continue to freeze fuel duty or reverse the 5p per liter tax cut introduced by the Conservative Party in 2022, which is due to expire on January 1.
The average fueling cost remains £10 more expensive than before the Iran war, putting further pressure on family budgets
Conservative shadow transport secretary Richard Holden said: ‘Labour’s Christmas fuel tax increase will hurt businesses and deal a blow to hard-working families already stretched to breaking point.
‘It’s time for Andy Burnham to ignore the fuel duty tax increase.’
Conservative shadow transport minister Greg Smith said: ‘We’re already taxing the pumps too much.
‘Workers need to understand that driving is not a luxury, it is vital to daily life. Shooting people at the pumps doesn’t help anyone.’
Howard Cox, founder of the FairFuelUK campaign, said: ‘Frankly, I do not trust Labor to support motorists or reduce fuel costs sensibly to fight inflation and support economic growth.
‘Their traditional short-term approach to fooling drivers is at the heart of their financial DNA.’
Sources close to Mr Burnham have repeatedly refused to say whether he will continue to freeze fuel duty or roll back the 5p per liter tax cut that the Conservative Party introduced in 2022 and is due to expire on January 1.
The Mail asked the press team twice this week but they refused to comment on both occasions.
If Mr Burnham’s government allows it to expire, it will add more than £3 to the cost of filling it.
They also refused to say whether they would link the tax to inflation so that it would increase each year.
Fuel duty, currently charged at 52.95 pa a litre, is supposed to rise in line with annual inflation but has been frozen by successive Conservative Party chancellors between 2011 and 2024.
Outgoing Prime Minister Sir Keir Starmer’s Chancellor, Rachel Reeves, also chose to freeze it and extended it until January 1 to help motorists in the face of sky-high pump prices caused by the Iran war.
But Mr Burnham, who was appointed Labor leader today but will not receive the keys to No 10 until Monday, said he needed to raise taxes to fund his spending plans, raising fears he would target the fuel duty among other taxes.
During a speech today announcing himself as the new Labor leader, Mr Burnham did not reveal any details about his tax and spending plans and did not take questions from journalists, meaning he could not be asked about them.
Even though he is just days away from being handed over the keys to No. 10, he has faced mounting criticism for the little scrutiny he has opened himself up to.
He will also not have to face MPs in parliament for several weeks due to the summer recess this week.
Average pump prices today are 152.54 pence per liter for petrol and 167 pence for diesel.
They began to decline after the US-Iran ceasefire was declared in June. However, after this month broke down, prices have started to rise in recent days.
Before the Persian war these amounts were 132.83 pa liter and 142.38 pence respectively; This means that fueling up with either fuel is still £10 more than before the conflict broke out. This adds more than £100 to the average family’s annual petrol bill.
The RAC’s fuel guru Simon Williams said: ‘Unfortunately for drivers many will be heading off for a much-needed break [as schools close for the summer] – Prices at the pump are rising again.
‘Petrol is already up 2p since hitting a three-month low on July 6, while diesel is up 2.5p in just over a week.’
