Will petrol tax rise to fund £20bn NHS cash injection?

THE eight-year freeze on fuel duty could be lifted to raise billions of pounds for the NHS and boost public spending, it was reported last night.

Allowing fuel duty to rise could yield £800million more to help pay for the NHS’s £20billion 70th birthday present.

The move, which may also see a rise in alcohol duty, is said to be ‘under serious consideration’ by ministers.

Currently fuel duty is frozen at 57.95 pence per litre and has been since 2011. That is thought to have reduced prices for drivers by 13 per cent.

However, Tory MPs have already expressed concern at the rising cost of living and higher fuel and alcohol prices would not help the situation. Lifting alcohol duty would free up another £200million a year.

Last night Carl Emmerson, of the Institute for Fiscal Studies, said MPs face a stark choice between raising fuel and alcohol duty and ditching the deficit reduction target altogether.

‘If they don’t [lift the freeze] the deficit hole will get even bigger,’ he told the Guardian.

‘The challenge of finding the money for the NHS, keeping the public finances on the track the Chancellor might want, would all be harder if you continued freezing it.’

A Treasury spokesman said: ‘As the Prime Minister and Chancellor have made clear, taxpayers will have to contribute a bit more, in a fair and balanced way, to support the NHS we all use.’

Former minister Robert Halfon has campaigned against lifting the freeze and said: ‘Any rise in fuel duty would really hit hardworking people.’

‘Deficit hole will get bigger’