There is growing speculation the government will increase fuel duty by between 5p and 8p a litre in this week's Budget. Campaigners say the high cost of rail travel and a promise to cut carbon emissions means not raising it is hard to justify. But businesses in rural Cambridgeshire tell the BBC any rise could be damaging.
The tax is levied at 52.95p a litre (VAT is extra) and is worth about £25bn a year to the exchequer. But since 2011 it has not gone up, and in 2022 the last government reduced it by 5p.
The government will not comment ahead of the Budget, but the Campaign for Better Transport says ending the 5p cut in fuel duty could raise £2.6bn a year. Katie Thorogood is one of the owners of Love Life Care, which supplies domiciliary carers to people in the Ely area.
The company employs 14 staff and spends about £1,000 a month reimbursing their mileage. "For a small care company like ours, the cost of fuel already has an impact. If fuel duty does go up, we'll have to increase our fees that will impact on our clients," she says.
"We've noticed in the past [when fuel prices went up] that they tend to reduce their care packages, which is leaving them in a vulnerable position. "This could put people off from wanting to work in the care industry, [which] is already struggling when it comes to recruitment. We might also have to cut down on the areas which we cover.
"So this is potentially putting us at risk of losing staff and reducing our capacity for care." Trevor Rowell ow.