DRIVERS have been warned more cost of living pain is on the way as October's budget is expected to include a rise in fuel duty, according to the RAC. Chancellor Rachel Reeves is set to squeeze motorists further as the Government seeks to fill a "£22 billion black hole" in the public finances. 3 Millions of drivers face paying more fuel duty after October's budget, the RAC has warned Credit: Getty 3 Chancellor Rachel Reeves is expected to reverse a 2022 cut in the levy in her budget on October 30 Credit: Reuters The tax rate has been frozen at 57.
95p per litre since 2011, in part thanks to The Sun's Keep It Down campaign. It was even temporarily reduced by 5p to 52.95p in 2022, a cut which has been carried forward to 2024.
However, the RAC is now urging drivers to prepare for the first rise in the rate for over a decade, returning it to pre-2022 levels The Chancellor is expected to announce the move as part of a package of revenue raisers as the Treasury scrambles to balance the books. READ MORE MOTORS NEWS FORDING ON Abandoned Ford left on road so long council had to tarmac AROUND it FUEL ALARM Drivers face permanently high petrol prices if Reeves raises fuel duty in Budget It follows from Sir Keir Starmer's speech this week, in which he revealed that "things will get worse before they get better". The PM also called on "those with the broadest shoulders" to cough up more to fill the hole, which he blamed on the previous government.
Speaking in the Downing Street rose garden, Sir Keir said: "There is a Budget coming in October, and it’s going to be painful. "We have no other choice, given the situation that we’re in. Most read in Motors DELAY ON THE WAY Motorway used by 150k Brits daily to close for first time in 64 years CZARJACKERS Russian criminals blamed for thefts of UK luxury supercars worth millions FUEL'S GOLD UK's 'cheapest' petrol station revealed - and it's in Scotland PLUG IN Little-known car brand to release incredibly cheap EV - with 193-mile range "I’ll have to turn to the country and make big asks of you as well, to accept short-term pain for long-term good, the difficult trade-off for the genuine solution.
" Simon Williams, the RAC's head of policy, said that Ms Reeves had "no option" but to increase the fuel duty to 58p per litre when she gets up to the dispatch box on October 30. He added: "She knows the 5p discount is losing the Treasury £2 billion a year. "She also knows drivers were overcharged by a staggering £1.
6 billion last year according to the Competition and Markets Authority’s recent report. "We’d normally be against any increase in duty, but we’ve long been saying drivers haven’t been benefiting from the current discount due to much higher-than-average retailer margins." Mr Williams also urged ministers to use the boost to consider a new system of road tax, using the controversial pay-per-mile template.
He went on: "As more and more electric vehicles come onto the roads, the Government will need to tax drivers differently. "We think replacing fuel duty with a pay-per-mile system as soon as possible is the way forward as then the only tax levied on fuel would be VAT. "This would give retailers nowhere to hide.
" However, the Opposition has responded furiously to the speculation of tax rises. Read more on the Scottish Sun 'REST IN PARADISE' Mum murdered at Glasgow flat pictured as heartbreaking tributes flood in THREE HERE NOW Oasis will announce MORE tour dates as Bonehead confirmed to join Gallaghers Tory leader and former PM Rishi Sunak tweeted: "Keir Starmer’s speech today was the clearest indication of what Labour has been planning to do all along – raise your taxes." And leadership contender Robert Jenrick accused Sir Keir of "shamelessly rewriting history" after "laying the groundwork for huge tax rises".
3 It follows PM Sir Keir Starmer's warning that the budget will be 'painful' for many Credit: EPA.
