Chancellor to carefully consider calls for ‘more substantial’ fuel duty cut
Motorists could receive further help after Rishi Sunak told MPs he will carefully consider calls for a “more substantial” fuel duty cut.
The Chancellor was urged by Conservative MPs to go further than the current 5p per litre reduction, amid concerns the policy “didn’t really touch the sides” for hard-pressed drivers.
Mr Sunak said he would take the recommendations “under advisement” when challenged in the House of Commons.
Speaking at Treasury questions, Conservative former minister Esther McVey (Tatton) said: “I appreciate the Chancellor cut fuel duty by 5p per litre, but that didn’t really touch the sides.
“So can I urge him to be bolder and cut duty by at least 20p per litre as requested by Fair Fuel UK, and which would make a huge difference to individuals and businesses in my patch, not least hauliers where the cost of running a single truck has raised by 17% in the last year?”
Treasury minister Helen Whately said: “I hear (Ms McVey’s) request there. I will say to her that the combination of the freeze on fuel duty in the Budget and then the cut in the spring statement is essentially a £5 billion tax cut.
“So this really is substantial support to businesses with the cost of fuel. As I’ve also said, we are taking further steps to support businesses.”
Conservative MP Philip Davies (Shipley), who is married to Ms McVey, added: “Further to the question from my right honourable friend, the member for Tatton, can I urge the Chancellor to think again about the cut in fuel duty?
“Although the one he introduced was welcome, it hasn’t really been noticed by many people and therefore can I urge him to think again about a much more substantial cut in fuel duty, on a temporary basis, just as they’ve done in Germany?”
Mr Sunak replied: “I thank my honourable friend for supporting the right honourable member for Tatton, and I’m glad he did.
“What I will say to him is of course I will take all his recommendations under advisement.
“It is, as (Ms Whately) pointed out, a £5 billion cut to go with the freeze in fuel duty so it is significant, but we appreciate it is not being felt at the pumps because of the rise in wholesale prices.
“I want to reassure him that the Energy Secretary is in dialogue with the CMA (Competition and Markets Authority) to make sure that fuel duty cut is being passed on as well.”
Labour MP Christian Wakeford (Bury South), who defected from the Conservatives in January, earlier described the 5p fuel duty cut as “inadequate” and raised concerns over higher taxes.
He said: “All by a Chancellor who has clearly run out of ideas.”
Prime Minister Boris Johnson was recently non-committal when asked if he would slash fuel duty further following the initial cut introduced in March.
Elsewhere at Treasury questions, Mr Sunak said in response to questions from Labour MP Mary Glindon (North Tyneside): “Perhaps her party could start by opposing the crippling rail strikes of the past week or two, which are doing nothing to ease the burdens of cost of living on public sector workers.”
Published: by Radio NewsHub