Reports suggest that Chancellor Jeremy Hunt is preparing to allocate £5 billion to extend the freeze on fuel duty in the forthcoming Spring Budget.
This move would prolong the 5p per litre reduction in fuel duty on petrol and diesel announced by Rishi Sunak in 2022 for another year.
Mr Hunt’s proposal reflects his aim to alleviate the tax burden, which is anticipated to escalate to record levels despite any Budget announcements.
Alongside the freeze on fuel duty, there may also be a corresponding 2p reduction in national insurance, as the Treasury explores alternatives following the decision against reducing income tax.
Plaid Cymru’s Treasury Spokesperson, Ben Lake, has issued a stern warning to the Chancellor ahead of the Spring Budget, urging against further cuts to public services in pursuit of short term electoral gains.
Ben Lake said: “While it may not feel like it, the UK remains the sixth largest economy in the world, and there is no shortage of wealth in the economy: large corporations like British Gas announcing a 10-fold profit increase for 2023.
“What we need is a government that recognises the importance of investment in public services to both support the well-being of citizens and economy alike, and a tax system that distributes the burden of funding this investment fairly.”
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