Rachel Reeves will implement another freeze on fuel duty this autumn, supporting drivers facing cost of living issues. This move comes despite pressures from campaigners and economists for a tax hike. The maintained freeze, alongside a previous petrol cut, will cost around £5 billion annually. The Treasury views the freeze as a proactive measure against financial strain on households, while HuffPost reports that increases aligned with inflation will not appear in the Autumn Budget as Reeves looks to manage public finances effectively.
Rachel Reeves will freeze fuel duty again this autumn in a boost to drivers still struggling with the cost of living, it has been reported.
Maintaining the freeze, and keeping in place a 5p cut brought in by Rishi Sunak as chancellor in 2022, is expected to cost around 5bn per year.
Despite calls from campaigners and economists to hike the tax, the freeze is an example of the Treasury being front-footed in tackling the cost of living pressures.
Treasury sources indicated that a hike in fuel duty in line with inflation will not form part of Ms Reeves' Autumn Budget as she seeks to balance the books.
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