Rishi Sunak is warned he would commit ‘political suicide’ if he raises fuel duty by 12p
- The Centre for Economics and Business Research report will pile pressure on the Prime Minister after he refused to rule out a 12p-a-litre increase
- A rise could push up inflation by more than 2 per cent,
- Drivers are facing the costliest Christmas ever, with a fuel fill-up costing nearly £4 more than last year
Raising fuel duty by 12p would be ‘political suicide’, Rishi Sunak was warned by his own MPs yesterday.
It came as a study warned such a rise could push up inflation by more than 2 per cent, wipe 1 per cent off GDP and cause 31,000 job losses.
The Centre for Economics and Business Research (Cebr) report will pile pressure on Mr Sunak after he refused to rule out a 12p-a-litre increase next year.
When adding VAT, petrol and diesel would soar by 14.4p a litre, adding nearly £8 to filling up a typical family car’s 55-litre tank.
Raising fuel duty by 12p would be ‘political suicide’, Prime Minister Rishi Sunak was warned by his own MPs
A rise in prices could push up inflation by more than 2 per cent, wipe 1 per cent off GDP and cause 31,000 job losses
Tory MP Craig Mackinlay said: ‘To raise duty against already overtaxed motorists facing a new assault by city mayors eyeing up drivers as a new cash cow would be economic as well as political suicide and must be opposed.
‘I call upon both the Chancellor and PM to say clearly now that no such rises will be entertained. Motorists have had enough of being easy targets for price gouging and excessive taxation.’
Fellow Tory Andrea Leadsom said: ‘At a time when families are struggling with the rising cost of living, any rise in fuel duty would be a devastating hit for people trying to get to work, school or just for the weekly shop.’
Drivers are facing their costliest Christmas getaway ever, with a petrol fill-up costing nearly £4 more than last year
Drivers are facing their costliest Christmas getaway ever, with a petrol fill-up costing nearly £4 more than last year and almost £15 more for diesel.
The Cebr report predicts inflation would spiral by around 2.3 per cent after the spring budget if fuel duty is hiked by 12p.
And annual fuel bills for the poorest 10 per cent would rise by £171.97 – accounting for 7 per cent of expenditure. But the highest 10 per cent’s rise would account for only 3.3 per cent.
Around 1 per cent of GDP would be lost and employment would fall by 31,000 jobs, said the study commissioned by the FairFuelUK campaign group.
A Government spokesman said: ‘No decisions have been made on fuel duty rates, this will be for March’s budget, to align with the Office for Budget Responsibility’s spring economic forecast.’
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