Rachel Reeves braces for nationwide anger as campaigners demand fuel duty stays frozen - 'Wrong measure'

The MPs will take the FairFuelUK petition to both No10 and No11 on Tuesday, November 25, amid growing signs in Westminster that the Chancellor may be looking at tax hikes to plug gaps in the public finances.

Campaigners warned that any rise in fuel duty would hit families, small firms and rural drivers the hardest – and could push the cost-of-living crisis into yet another painful chapter.

FairFuelUK, a leading voice in the petition, warned that the moves being discussed inside the Treasury would be "economically harmful and deeply unpopular".

The group feared ministers have been eyeing up an increase of around 5p per litre once Rishi Sunak's temporary cut expires in March 2026.

The campaign has also sounded the alarm over talk of a 3p-per-mile charge for electric vehicles from 2028 – a new road-pricing system designed to make up for falling fuel tax revenues.

Under such a scheme, drivers would be billed for every journey they make. Early calculations suggest a straightforward run from London to Edinburgh could cost roughly £12 in mileage fees alone.

Motoring groups detailed how this all amounts to a stealthy attempt to squeeze drivers at a time when many are already struggling.

FairFuelUK warned a fuel duty rise would be the first in 15 years and could do serious damage to businesses that rely on road transport.

The group's annual pre-Budget survey, which received more than 60,000 responses, showed strong public resistance to any rise in duty.

Strikingly, three-quarters of Labour voters in the 2024 election were found to want fuel duty frozen or reduced, while one in 10 Labour voters backed scrapping the tax entirely.

Howard Cox, founder of FairFuelUK, said a rise now would be a political disaster for Labour.

He shared: "Keeping fuel duty frozen will be one of the best fiscal stimuli for this unpopular Government to restore confidence.

"Hiking it could be the final political blow in a succession of self-inflicted disasters."

Mr Cox also hit out at Labour MPs for failing to engage with the debate, saying that after inviting dozens of them to a pre-Budget reception, only one turned up – and even they refused to give a clear view on fuel duty.

The Society of Motor Manufacturers and Traders branded the plan to introduce pay-per-mile taxes as "the wrong measure, at the wrong time".

AA President Edmund King echoed that warning, stating that ministers must "tread carefully" or risk "slowing down the transition to EVs" altogether.

The warnings come as electric vehicle sales continue to stall. Although numbers are up compared to last year, EVs are still lagging well behind petrol cars in both the new and used markets.

Manufacturers are already struggling to meet the Government's Zero Emission Vehicle mandate, with EVs making up only about 22 per cent of new sales against the required 28 per cent.

FairFuelUK pointed out that fuel duty has now been frozen for 15 years and is still around 6p per litre lower than it was the last time Labour ran the country.

The group argued that the freeze has helped households while actually boosting the Treasury by keeping inflation lower than it otherwise would have been.

Economic analysis for FairFuelUK by the Centre for Economics and Business Research backs this up.

It suggests raising fuel duty would bring in only limited revenue in the short term, and could even backfire.

If drivers cut down on journeys because of higher costs, Treasury income from fuel taxes could fall by more than 60 per cent within five years.

Alongside its duty campaign, FairFuelUK is calling on ministers to keep backing PumpWatch, the transparency scheme designed to stop petrol retailers overcharging.

The group claims that, even now, pump prices are 5p to 9p per litre higher than they should be.