The Chancellor unveiled his Autumn Statement yesterday (November 17), with the UK facing its biggest tax burden for many years. Although there were some cost-of-living aids and a rise in the Minimum Wage, millions around the country will be wondering what the real impact is on their finances.
In an hour-long speech, Chancellor Jeremy Hunt set out his plan to grapple with the financial chaos left behind by Liz Truss and Kwasi Kwarteng's mini budget eight weeks earlier. One of the points noted on page 53 of the OBR's document is the admission that forecasts assume a 23 per cent increase in fuel duty from March 2023.
Prior to the announcement, Mr Hunt had been urged not to hike fuel duty in his autumn budget. The RAC told him that increased pump prices could push inflation even higher.
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Analysis by the motoring services company found there is an “extremely strong link” between the two. The Treasury cut fuel duty by 5p per litre in March.
Average pump prices have fallen from the record highs of 192p per litre for petrol and 199p per litre for diesel in July. However, the RAC said the average cost of a litre of petrol rose by 4p in October while diesel was up 10p.
A 23 per cent rise would put around 12p a litre on petrol and diesel - which would raise a whopping £5.7billion for the Treasury. It seems unlikely, though, given fuel duty has been frozen since January 2011 - and Tory MPs are already furiously demanding a temporary 5p cut is extended.
Meanwhile, energy bills will rise to £3,000 a year for the typical household from April - up from £2,500 now. Disability and working age benefits will be increased in line with inflation.
Older people are heading for a 10.1 per cent increase to the state pension from next April, after Mr Hunt confirmed the triple lock is being protected.
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