What's happened
Labour leader Keir Starmer has hinted at a possible rise in fuel duty in the upcoming October budget, citing a £22 billion public spending gap. The RAC supports this move, arguing that drivers are not benefiting from the current 5p cut due to inflated retailer margins.
Why it matters
What the papers say
According to The Independent, Keir Starmer has not ruled out raising fuel duty, warning that upcoming measures will be 'painful.' The RAC argues that the current 5p cut is ineffective, with Simon Williams stating, 'drivers haven’t been benefitting from the current discount due to much higher-than-average retailer margins.' BBC News echoes this sentiment, noting that the RAC believes the Chancellor has 'no option but to put fuel duty back up.' This perspective highlights the tension between government revenue needs and the financial burden on consumers.
How we got here
The Conservative government cut fuel duty by 5p in March 2022, which has since been frozen. Starmer's warning of a 'painful' budget comes as Labour prepares to address a significant public finance shortfall.
Common question
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What are the implications of Labour's potential fuel duty increase and NHS cuts?
As Labour leader Keir Starmer hints at a possible rise in fuel duty amid a significant public spending gap, concerns are growing about the impact on consumers and public services. This situation is further complicated by recent controversies surrounding proposed NHS cancer treatment cuts. Here, we explore the implications of these political decisions and their effects on public opinion.
More on these topics
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Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.
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Sir Keir Rodney Starmer KCB QC MP is a British politician and former lawyer who has served as Leader of the Labour Party and Leader of the Opposition since 2020. He has been Member of Parliament for Holborn and St Pancras since 2015.