5p fuel duty cut set to stay another year if economy keeps improving | The Sun

THE popular 5p fuel duty cut is set to stay another year if the economy keeps improving.

Treasury sources say Jeremy Hunt is keen to extend the tax cut in his Spring Budget if public finances are in good shape.

The Chancellor is also under pressure from motorists and Labour to keep fuel duty frozen – a Tory policy that's been in place for 12 years.

No final decisions on taxes have been made yet, with Treasury officials keeping a close eye on inflation before solidifying Spring Budget policies.

In good news for hard-up Brits, the UK’s rate of inflation fell again in December.

But it still sits at an eye-watering rate of 10.5%, causing a major squeeze on household finances.

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The highly anticipated first Budget of 2023 is set to be revealed on March 15.

In the Commons Mr Hunt will announce how much the price of beer, cigarettes, fuel and income tax will change – if at all.

Yesterday, Rishi Sunak crushed dreams of any major cuts going ahead.

In a swipe at some of his own MPs, he declared only “idiots” think income tax will be slashed this year.

The PM insisted he wished he could take an axe to tax straight away but had to fix the battered economy first.

He told voters in Lancashire: "That is what I want to deliver. I wish I could do that tomorrow quite frankly, but the reason we can't is because of all the reasons you know. You are not idiots, you know what has happened."

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“We had a massive pandemic for two years, then we have got this war going on which is having an enormous impact on inflation and interest rates.”

He sounded the alarm during a “town hall” meeting in Morecambe to field questions from the public after fresh calls from his own MPs to cut taxes.

It was the first of many “PM Connect” trips – a plan first revealed by us to boost his flagging poll numbers ahead of the next election.

As Chancellor and a candidate for Tory leader Mr Sunak vowed to slash income tax by a penny next year – and then go even further.

But Mr Hunt’s Autumn Statement last year actually increased the burden and insiders warn the upcoming Spring Budget will not bring it back down.

Last night the Taxpayers' Alliance said "Rishi should commit to no more tax rises."

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Boss John O'Connell said: "Taxpayers will be rightly worried about further Tory tax hikes.

"More rate rises will only add to the damage of a record tax burden and persistent inflation."

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