DRIVERS could be in line for a cut to fuel duty today of at least 5p.
Chancellor Rishi Sunak is expected to slash the hated 57.95p levy — the first cut since 2010 and a 11-year freeze.
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There was also speculation that he may announce plans to cut income tax by 1p next year when he deliver his Spring mini-budget at noon.
Better than expected tax receipts have given him “wiggle room” to help ease the cost of living crisis.
Despite the economic fallout from the war in Ukraine, experts say the Chancellor has billions to “play with” to help struggling Brits.
Measures to be announced today are are expected to include:
- RAISING the threshold workers pay National Insurance to ease the pain of April’s raid on wallets.
- ABOLISHING VAT on insulating homes to help drive down the cost of heating and go green.
- EARMARKING more cash to arm Ukraine against Russia.
- ANNOUNCING a planned 1p cut to Income Tax to come in next year.
Yesterday the Office for National Statistics (ONS) said the Treasury collected £53.7billion in taxes last month, up more than £4billion on 2021.
Borrowing was a record £138.4billion, but still £21.2billion below the figure predicted by the Office for Budget Responsibility.
Treasury coffers have recovered faster than expected after the pandemic due to inflation although debt interest payments were the highest for a February since records began.
Former OBR boss Sir Charlie Bean said inflation has given Mr Sunak plenty of money to “play with” today to try ease the pain of hard up Brits.
ONS revealed the Treasury raked in £4.5billion more from motorists last year.
Drivers paid £24billion in fuel duty — up from £19.5billion in 2021 when fewer people were on the roads.
Howard Cox, founder of campaigners FairFuelUK, said: “The Chancellor is awash with fuel tax revenue.”
The extra cash hands Mr Sunak headroom to cut at least 5p from duty — something our Keep It Down crusade has campaigned for over 12 years.
Filling up an average family car is above £100 for the first time due to rocketing oil prices.
Mr Sunak said last night it was his mission to fix the UK’s finances as the global economy struggles following Russia’s invasion of Ukraine.
‘HELP WITH COST OF LIVING’
He will tell MPs today: “We will confront this challenge to our values not just in the arms and resources we send to Ukraine but in strengthening our economy here at home.
“When I talk about security, yes, I mean responding to the war in Ukraine. But I also mean the security of a faster growing economy.
“The security of more resilient public finances. And security for working families as we help with the cost of living.”
It came as Cabinet minister George Eustace hinted that costly policies on net zero, climate change and tackling obesity will be kicked into the into the long grass as Brits face a cash squeeze.
New regulations could be paused, or ditched, as part of a fresh review.
Several departments have been asked to review the cost of upcoming policies and report on how the will affect struggling families.
He said: “We are doing a piece of work looking at a whole range of different things that we might be bringing in — looking at the timings, stress-testing them again, checking what the actual impacts would be.”
