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Fuel tax freeze is massive drain on revenue, say fiscal policy experts

28 May 2026
 

Paul Johnson, former head of the Institute for Fiscal Studies (IFS), has argued on BBC Radio that Chancellor Rachel Reeves should not scrap the planned 5p increase on fuel duty.

Johnson believes that reversing or axing the rise means the Government will inevitably have to recoup that lost revenue by increasing costs or taxes elsewhere.

The continued freeze on fuel duty is having an adverse impact on public finances because the Government is receiving less money than it otherwise would have had,...

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