PLANS by the Chancellor to slash fuel duty in his Spring Statement “won’t fix the cost-of-living crisis,” experts warned yesterday as calls continue to grow for a wealth tax.
Chancellor Rishi Sunak hinted on Sunday at measures to ease the crippling cost of petrol prices to be unveiled tomorrow during his Spring Statement.
The Chancellor could temporarily cut fuel duty by as much as 5p per litre to support families and businesses through the soaring cost-of-living crisis.
Forecourt prices have risen sharply since Russia’s invasion of Ukraine, with average prices at a record 165.9p per litre for petrol and 177.3p per litre for diesel.
But New Economics Foundation senior researcher Alex Chapman said: “Cutting fuel duty is not going to fix the cost of living.
“Just 7 per cent of the savings from cutting fuel duty will go to the poorest fifth of households, while one-third will go to the richest fifth.
“If your objective is to support those at the bottom of the income spectrum or those who are most vulnerable, a cut to fuel duty is an incredibly inefficient way to get support to that group.”
Socialist Campaign Group secretary Richard Burgon said: “Gas and oil giants are making £900 profit every second.
“British billionaires are increasing their wealth by £290 million every day and bankers are getting a multibillion-pound tax cut.
“We need a wealth tax on the richest 1 per cent, not attacks on the living standards of the majority.”
Labour leader Sir Keir Starmer said: “I think the simple things are a windfall tax on oil and gas companies who’ve made more profits than they expected. Use that to bring down energy bills, and don’t introduce this new tax — National Insurance tax.
“It is the wrong tax at the wrong time.
“If the government is going to actually do something about fuel duties, then, of course, we will support that because I think, for most people, this is such a difficult situation.”
Shadow chancellor Rachel Reeves said yesterday that a 5p reduction in fuel duty amounted to just “a £2 saving on the average car tank.”
Prime Minister Boris Johnson met nuclear industry leaders yesterday to find longer-term measures to guard against future energy bill pressures by placing more emphasis on nuclear power.
A No 10 spokesperson said that the Downing Street roundtable discussed how government and industry could remove barriers to delivering more nuclear plants.
