Hunt may freeze fuel duty for another year

Chancellor may scrap 12p-a-litre petrol pump rise ‘depending on what finances are at the time’

Jeremy Hunt opened the door to freezing fuel duty for another year as he was grilled on tax cuts by backbenchers. The Chancellor said any such move would depend on “what the finances are at the time”. Drivers hit by high prices at the pumps are facing the prospect of fuel duty rising by 12p a litre next month. Although the duty is meant to rise in line with inflation, it has been repeatedly cancelled by ministers to spare motorists from higher costs.

JEREMY HUNT opened the door to freezing fuel duty for another year as he was questioned on tax cuts by Tory backbenchers yesterday.

The Chancellor said any decision to take such a move, which would save motorists billions of pounds would depend on “what the finances are at the time”. Drivers already hit by high prices at the pumps are currently facing the prospect of a fuel duty rise of 12p-a-litre next month, unless the Government decides to impose a freeze.

Although the duty is meant to increase in line with inflation, the rise has been repeatedly cancelled by ministers to spare motorists from higher costs.

Jonathan Gullis, MP for Stoke-ontrent North, said he questioned the Chancellor on the matter at a meeting of the 1922 Committee of backbench Tories yesterday afternoon, but was told “we’d have to wait and see what the finances are at the time”.

Meanwhile, Sir Edward Leigh, a former minister, said he urged Mr Hunt to cut taxes in the spring Budget, stressing this “can’t wait till the general election” as people are “depressed” and “need hope”.

But the Chancellor said “nothing” in response, the Gainsborough MP told reporters after the meeting, adding that he was “obviously” not going to comment on those matters yet.

“He can’t, to be fair to him. But he got the message,” he said.

“My view is you can’t wait till the general election. People are depressed.

“You’ve got to give them hope, you’ve got to say we’ve made the right decisions since September, therefore that’s given me room in this Budget to cut taxes, whether it’s corporation, personal, fuel... that was my point anyway.”

In December, Mr Sunak used his first appearance before the liaison committee of MPS to leave the door open to a 12p-a-litre rise in the duty in the spring Budget.

He said: “Having previously had his job, I always preferred it when the Prime Minister made absolutely no comment about future tax policy, and so I will very much adhere to that.”

Such an increase would reverse a one-off 5p-per-litre cut made by Mr Sunak when he was in charge of the nation’s finances in March 2022.

Pressed by Harriett Baldwin, the Treasury select committee chairman, if he would let Mr Hunt “get away” with the rise, Mr Sunak replied his Chancellor would make the decisions and “announce them in the normal way”. Mr Hunt quipped that he was “quaking” as he arrived for the meeting of Tory backbenchers but MPS gave mainly positive reviews as they filed out, saying it had been “marvellous”, “all very jolly” and “not too bad”.

David Simmonds, MP for Ruislip, Northwood and Pinner, said “everyone agrees” that tackling inflation is the “key short-term priority”, and referenced

‘You can’t wait till the general election – people are depressed... you’ve got to give them hope’

a “strong Conservative message” about returning to a “tax-cutting agenda once inflation’s under control”.

He said MPS were feeling “very serious” because the inflation challenge is a “big one”, adding: “But at the same time there’s a good window of opportunity to get it right. People see that.”