John Healey has promised to give people “breathing space” from cost of living pressures in his first autumn budget, with reports that fuel duty could stay frozen at 53p a litre. The same package may also bring changes to business tax rules for high street retailers, ahead of Wednesday's announcement.
Stephen Payne on fuel costs
For Stephen Payne, the pressure is immediate. The taxi driver said diesel was “going up every day” and that he now needs “four or five big jobs” before he earns any profit, even before he pays for everyday essentials. He said Evo Taxis cannot simply lift fares because “people haven't got the money these days” and “won't use us if we keep putting the prices up.”
The RAC said diesel reached a record high of more than £2 a litre in October after conflict in the Middle East pushed up prices. Fuel duty has been frozen at 53p a litre since March 2022, and it had been due to rise on January 1st. The reported decision to extend the freeze would keep that tax rate where it is for drivers already facing higher running costs.
Craig Cash on High Street costs
Craig Cash, who has run Herbert Sports on High Street for the last 27 years, said business in his shop was the worst he had ever seen it. He said a lack of footfall and the rise of people shopping online, particularly young people, had made retail very hard, and he pointed to rising costs including the increase to the national minimum wage.
Cash said, “I've been through recessions, I've seen that and this is getting to be the worst I've known.” He added, “Personally, I've had to take a pay cut to help balance the books. I've put in a cash injection through the quiet months just to get you through and that was never ever a thing.” His account cuts across the government’s pledge to make helping the high street a priority: shopkeepers want relief now, while the costs keep climbing.
Wednesday's announcement
The Times reported that the Chancellor may change tax rules for big online platforms to fund a cut in business rates for high street retailers. If that happens, the practical effect would be to shift part of the burden away from shops on High Street and toward a different part of the tax system, while leaving the fuel duty question to Wednesday's announcement.
For drivers and shop owners, the answer comes down to whether John Healey keeps the fuel duty freeze and backs the high street with a business rates change. On the facts available now, that is the clearest route to the breathing space he has promised.
