Rachel Reeves ‘rakes in nearly £500m’ as UK drivers demand key change | Politics | News
Drivers want Rachel Reeves to make significant fuel change (Image: Getty)
More than 71,000 Brits have called on MPs to cancel an expected fuel tax increase in the autumn budget, as the Liberal Democrats table a tax cut proposal. Today’s motion would require an immediate 10p cut in fuel duty, as the Treasury is thought to have made almost £500 million in extra tax revenue that has pushed up prices since the start of the US-Israeli war with Iran.
Drivers are bearing the brunt of the fuel crisis and the Liberal Democrats want Rachel Reeves to use revenue from the Energy Profits Tax to cut fuel duty to support drivers. It comes as 71,000 campaigners emailed MPs about the FairFuelUK campaign; This campaign calls for not only the tax to be frozen in the next Budget, but also for fuel duty to be reduced now.
According to FairFuelUK, intense lobbying resulted in the increase being cancelled, but it will likely be reintroduced in the March 2027 Financial Statement.
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British drivers pay more due to war in Middle East (Image: Getty)
Campaigners were outraged, saying oil companies’ profits were rising “to the detriment of drivers”, but other countries have stepped in to help reduce drivers’ fuel costs while the Chancellor “continues to ignore their plight”. A spokesman for HM Treasury said the Government was committed to keeping prices low for drivers.
Howard Cox, Founder of FairFuelUK, said: “This uninformed, bankrupt net zero focused Government remains in a state of lethargy, keeping the UK economy virtually stagnant.
“Over the course of our 16-year campaign, we have shown time and time again that lower infill costs bring more tax to the Treasury by increasing other tax revenue streams.
“More importantly, the current cost of gasoline, especially diesel, is crippling the ability of drivers and small businesses to spend in the economy.
“When will these ignorant Treasury politicians realize that more money in people’s pockets drives growth? For God’s sake, cut all fuel taxes immediately!”
The group also launched a petition that collected more than 148,000 signatures and will be handed over to the Treasury.
Analysts had previously predicted the Treasury would get a massive £8bn boost in earnings from the tax on North Sea oil and gas, as escalating conflicts in the Middle East push energy costs even higher.
carried out for TimesAnalysts said major revenue growth will occur if current high fuel prices continue throughout the year.
A spokesman for HM Treasury said: “Motorists are paying more at the pumps because of the war in Iran. “This is not our war and we did not take part in it.
“We are determined to keep costs low for drivers, which is why we have extended the 5p fuel duty cut twice until September and called for de-escalation.”
