Petrol and diesel could go up by 5p to cover cost of coronavirus

The cost of petrol and diesel could be set to rocket at pumps across the UK in a bid to cover the cost of coping with coronavirus.

Chancellor of the Exchequer Rishi Sunak is said to be in talks about ending the 10-year-freeze on fuel duty rises.

The Chancellor is said to be debating 5p rise on fuel prices to be announced in the Autumn Budget.

Ending the freeze would mean an instant 2p hike – with the Government then adding another 3p on top a Treasury source told The Sun it has plans for an extra 3p on top.

Conservative MP Robert Halfon warned: “Now is not the time to clobber workers, families, white van men and women and our public services with a fuel duty increase.”

Fuel duty has been held at 57.95p per litre since the March 2011 Budget. The levy was frozen for the tenth year in a row this year, after the Treasury announced plans to hold it for another 12 months.

Tax hikes of up to £20billion are reportedly being considered by the Treasury to deal with the cost of the coronavirus crisis.

Ministers are also looking at announcing hikes to capital gains tax and corporation tax as early as the November Budget.

The money could be clawed back from pensions, businesses, the wealthy, and foreign aid.

Sunak is reportedly considering hiking corporation tax from 19% to 24% in order to boost revenue by £12billion next year.

Capital gains tax might also be paid at the same rate as income tax, under the ideas being looked at.

A revamp of the inheritance tax system and the introduction of an online sales tax is also reportedly being considered.

The government had to raise billions to pay for the furlough scheme, while Britain’s GDP plunged by more than 20% in the early stages of the crisis as businesses closed.

Treasury sources said they do not comment on what may, or may not be, in the forthcoming Budget.

Businesses are urging the government to concentrate on further support measures to aid the recovery and “invest in growth”.

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