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There are calls for the chancellor to commit to a further freeze of fuel duty after a forecast from the Office for Budget Responsibility said 12p a litre would be added to pump prices if the government did not act.

Fuel duty was not mentioned by Chancellor Jeremy Hunt in his autumn statement earlier, but the fiscal watchdog’s document says it assumes there will be an increase in the spring.

The “planned 23% increase” would likely see the price of petrol and diesel rise by around 12p a litre, the OBR said, boosting government coffers by £5.7bn.

It would be the first time a government has raised fuel duty in cash terms since January 2011.

Tory MP Jonathan Gullis – who wants fuel duty to be cut further – has written to the chancellor, calling on him to “listen to motorists, van drivers and truckers, who are already being smacked hard with cripplingly high taxation” and prove to them the government “actually have their backs by keeping the price at the pump down”.

Fair Fuel UK founder Howard Cox said the “bombshell” had been “snuck away”, adding: “Needless to say, I’m loading both barrels to fight this tooth and nail”.

Fuel duty has been frozen at 52.95p a litre since 2011 and it was cut by 5p a litre in the spring statement last year, a measure due to expire at the end of March.

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The 23% figure comes from combing the forecast for RPI (retail price index) inflation next year and the assumption that the 5p cut will end.

Read more:
Key announcements from the autumn statement

Jaw-dropping change of tack by Jeremy Hunt – analysis
Pound falls as markets and business respond to autumn statement

RAC head of roads policy Nicholas Lyes: “As things stand, drivers will face an enormous hike in the cost of fuel next spring due to fuel duty going up.

“The OBR expects to see 12p added to a litre of fuel, as a result of the current 5p duty cut coming to an end combined with its scheduled rise – something that’s not been seen for over a decade due to duty being frozen in successive budgets.

“The government has always made a big deal of cancelling duty rises in the past and will face colossal pressure to do the same next year – after all, a rise of these proportions would heap yet more misery on the millions of households that depend on their vehicles, most of whom will just endured one of the costliest winters on record.

“Instead, we urge the government to focus on giving serious thought to developing a fair taxation system that can eventually replace fuel duty, which is effectively on borrowed time given the numbers of zero-emission vehicles on the roads that pay no fuel duty whatsoever.”

The OBR warning comes just a day after 23 Conservative MPs – including former home secretary Priti Patel and former Northern Ireland secretary Brandon Lewis – wrote to the chancellor, calling on him to cut fuel tax.

Speaking after the autumn statement, fellow Tory Craig Mackinlay said: “It would be beyond ridiculous to give a generous lift to benefits and pensions simply to take it away in an inflation busting fuel duty rise.”

A Treasury spokesperson said: “The 23% figure came from the OBR, not the Treasury. It is based on forecasts that are subject to change.

“We have not announced anything on fuel duty today – the existing 5p cut will remain in place until March 2023 (a tax cut which is worth £2.4bn), and final decisions on fuel duty rates will be made at the spring budget.”

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A conversation with historian Sir Niall Ferguson on Trump, tariffs and China

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A conversation with historian Sir Niall Ferguson on Trump, tariffs and China

👉Listen to The World with Richard Engel and Yalda Hakim on your podcast app👈

Richard and Yalda are joined by one of the world’s most eminent historians and political commentators to discuss culture wars, trade wars, and the possibility of World War Three over Taiwan.

Sir Niall says the US may be in the stage of “buyer’s remorse” with the Trump presidency, and predicts that by this time next year, he could be “deeply underwater” in the polls.

To get in touch or to share questions for Richard and Yalda, email theworld@sky.uk

Click here to visit their YouTube channel where you can watch all the episodes.

Click here to fill in our listener survey!

Episodes of The World With Richard Engel And Yalda Hakim will be available every Wednesday on all podcast platforms.

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World

In the idyllic Cognac region of southern France, Trump’s tariffs threaten a centuries-old way of life

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In the idyllic Cognac region of southern France, Trump's tariffs threaten a centuries-old way of life

The impact of Trump’s tariffs is reaching deep into every economy.

We travelled into the French rural heartland, heading for Cognac – the home of French brandy.

It is only half the size of Surrey but its exports to America are worth €1bn a year and that trade is now severely threatened.

The first buds are out on the vines of Amy Pasquet’s vineyard.

An American, she has married into the industry and with her French husband owns JLP Cognac.

She knows more than most the bond brandy has formed between their two countries that goes back to the war.

Tariffs latest: Follow live updates

More from World

Ms Pasquet said: “A lot of the African-American soldiers had really loved their experience here and had brought back the cognac. And I think that stayed because this African-American community truly is a community and they want to drink like their grandfather did.”

The ties remain with rappers like Jay Z’s love for cognac.

However, Ms Pasquet adds: “There’s also this other community of people who have been drinking bourbon for a long time, love bourbon, but find the prices just outrageous today. So they want to try something different.”

Amy Pasquet owns JLP Cognac with her husband
Image:
Amy Pasquet owns JLP Cognac with her husband

JLP’s products were served at New York’s prestigious Met Gala.

They were preparing to launch new product lines in the US. But now that’s in doubt.

It is hard being an American in France now, Ms Pasquet says.

Her French neighbours are appalled by what US President Donald Trump is doing.

She continues: “They’re like, okay, America’s forgotten how close France and America are as far as (their) relationship is concerned. And I think that’s hurtful on both sides. I think it’s important to remember that the US is many things, and not just this one person, and there are millions of inhabitants that didn’t vote for him.”

aaa

A fresh challenge for a centuries-old tradition

Making cognac takes years, using techniques that go back centuries. In another vineyard we met Pierre Louis Giboin whose family have been doing it for more than 200 years.

In a cellar dating back to the French Revolution, barrels of oak sit under thick cobwebs, ageing the brandy.

The walls are lined with a unique black mould that thrives off the vapours of cognac.

They have seen threats come and go over those centuries, wars, weather, pestilence. But never from a country they regard as one of their oldest allies and best of customers.

Read more:
What China could do next as Trump’s tariff war
How tariffs will affect your money

Could Trump’s tariffs tip the world into recession?

Pierre Louis Giboin's family has been making cognac for centuries
Image:
Pierre Louis Giboin’s cellar dates back to the French revolution

Mr Trump’s tariffs, says Mr Giboin, now threaten a way of life.

“It’s at the end of like very good times in the Cognac region. It’s been like 10 years when everything’s been perfect, we have good harvest, we sell really easily all the stock, but now I mean it’s the end.”

Ms Pasquet and Mr Giboin are unusual.

Most cognac makers sell their produce through the drink’s four big houses, Hennessy, Remy Martin, Martell and Courvoisier.

Some have been told the amounts they can sell have been drastically reduced.

Independents though like them must find new markets if the tariff threat persists.

Confusion away from the chaos

Outside in the dappled light of a Cognac evening Mr Giboin and I toast glasses of pineau – the diluted form of cognac drunk as an aperitif.

In this idyllic corner of France, a world away from Washington, Mr Trump’s trade war on Europe simply makes no sense.

“He’s like angry against the whole world and the way he talks like that Europe the EU was made against the US to cheat on the US. It’s just crazy to think like this,” Mr Giboin says.

It’s not just what Mr Trump’s done. It’s how Europe now strikes back that concerns the French. And it’s not just in Cognac where they’re concerned

France exports more than €2bn worth of wine to America.

In the heart of the Bordeaux wine region, Sylvie Courselle’s family have been making wine since the 1940s at their Chateau Thieuley vineyard.

It’s bottling season but they can’t prepare the wine headed for America while everything is up in the air.

Showing me the unused reels of US labels for her wine she told me she was losing sleep over the uncertainty.

Later she was meeting with her American distributors.

Gerry Keogh sells Ms Courselle’s wine across the US.

He says the entire industry is reeling

Sylvie Courselle with distributers
Image:
Sylvie Courselle with distributers

The Chateau Thieuley vineyard in the Bordeaux wine region
Image:
The Chateau Thieuley vineyard in the Bordeaux wine region

“I think it’s like anything. You don’t really believe it’s happening. And even when you’re in the midst of it, it was kind of like 9/11.

“You’re like… This is actually happening. It’s unbelievable. And when you start seeing the repercussions from the stock market, et cetera, and how it’s impacting every level, it’s quite shocking.”

They know the crisis is far from over and could now escalate.

“We feel stuck in the middle of this commercial war and we don’t have the weapons to fight, I think,” Ms Courselle said.

It is, she says, very stressful.

Jerry Keogh
Image:
Gerry Keogh

aaaaa

The histories of America and France have been intertwined for centuries through revolutions against tyranny and two wars fighting for liberty.

America used to call France its oldest ally, but under Donald Trump its now seen here as turning on France and the rest of Europe in a reckless and unjustified trade war.

It is all doing enormous harm to relations between the US and its European allies.

How Europe now decides to retaliate will help determine the extent of that damage.

Continue Reading

World

In the idyllic Cognac region of southern France, Trump’s tariffs threaten a centuries-old way of life

Published

on

By

In the idyllic Cognac region of southern France, Trump's tariffs threaten a centuries-old way of life

The impact of Trump’s tariffs is reaching deep into every economy.

We travelled into the French rural heartland, heading for Cognac – the home of French brandy.

It is only half the size of Surrey but its exports to America are worth €1bn a year and that trade is now severely threatened.

The first buds are out on the vines of Amy Pasquet’s vineyard.

An American, she has married into the industry and with her French husband owns JLP Cognac.

She knows more than most the bond brandy has formed between their two countries that goes back to the war.

Tariffs latest: Follow live updates

More from World

Ms Pasquet said: “A lot of the African-American soldiers had really loved their experience here and had brought back the cognac. And I think that stayed because this African-American community truly is a community. and they want to drink like their grandfather did.”

The ties remain with rappers like Jay Z’s love for cognac.

However, Ms Pasquet adds: “There’s also this other community of people who have been drinking bourbon for a long time, love bourbon, but find the prices just outrageous today. So they want to try something different.”

Amy Pasquet owns JLP Cognac with her husband
Image:
Amy Pasquet owns JLP Cognac with her husband

JLP’s products were served at New York’s prestigious Met Gala.

They were preparing to launch new product lines in the US. But now that’s in doubt.

It is hard being an American in France now, Ms Pasquet says.

Her French neighbours are appalled by what US President Donald Trump is doing.

She continues: “They’re like, okay, America’s forgotten how close France and America are as far as (their) relationship is concerned. And I think that’s hurtful on both sides. I think it’s important to remember that the US is many things, and not just this one person, and there are millions of inhabitants that didn’t vote for him.”

aaa

A fresh challenge for a centuries-old tradition

Making cognac takes years, using techniques that go back centuries. In another vineyard we met Pierre Louis Giboin whose family have been doing it for more than 200 years.

In a cellar dating back to the French Revolution, barrels of oak sit under thick cobwebs, ageing the brandy.

The walls are lined with a unique black mould that thrives off the vapours of cognac.

They have seen threats come and go over those centuries, wars, weather, pestilence. But never from a country they regard as one of their oldest allies and best of customers.

Read more:
What China could do next as Trump’s tariff war
How tariffs will affect your money

Could Trump’s tariffs tip the world into recession?

Pierre Louis Giboin's family has been making cognac for centuries
Image:
Pierre Louis Giboin’s cellar dates back to the French revolution

Mr Trump’s tariffs, says Mr Giboin, now threaten a way of life.

“It’s at the end of like very good times in the Cognac region. It’s been like 10 years when everything’s been perfect, we have good harvest, we sell really easily all the stock, but now I mean it’s the end.”

Ms Pasquet and Mr Giboin are unusual.

Most cognac makers sell their produce through the drink’s four big houses, Hennessy, Remy Martin, Martell and Courvoisier.

Some have been told the amounts they can sell have been drastically reduced.

Independents though like them must find new markets if the tariff threat persists.

Confusion away from the chaos

Outside in the dappled light of a Cognac evening Mr Giboin and I toast glasses of pineau – the diluted form of cognac drunk as an aperitif.

In this idyllic corner of France, a world away from Washington, Mr Trump’s trade war on Europe simply makes no sense.

“He’s like angry against the whole world and the way he talks like that Europe the EU was made against the US to cheat on the US. It’s just crazy to think like this,” Mr Giboin says.

It’s not just what Mr Trump’s done. It’s how Europe now strikes back that concerns the French. And it’s not just in Cognac where they’re concerned

France exports more than €2bn worth of wine to America.

In the heart of the Bordeaux wine region, Sylvie Courselle’s family have been making wine since the 1940s at their Chateau Thieuley vineyard.

It’s bottling season but they can’t prepare the wine headed for America while everything is up in the air.

Showing me the unused reels of US labels for her wine she told me she was losing sleep over the uncertainty.

Later she was meeting with her American distributors.

Gerry Keogh sells Ms Courselle’s wine across the US.

He says the entire industry is reeling

Sylvie Courselle with distributers
Image:
Sylvie Courselle with distributers

The Chateau Thieuley vineyard in the Bordeaux wine region
Image:
The Chateau Thieuley vineyard in the Bordeaux wine region

“I think it’s like anything. You don’t really believe it’s happening. And even when you’re in the midst of it, it was kind of like 9/11.

“You’re like… This is actually happening. It’s unbelievable. And when you start seeing the repercussions from the stock market, et cetera, and how it’s impacting every level, it’s quite shocking.”

They know the crisis is far from over and could now escalate.

“We feel stuck in the middle of this commercial war and we don’t have the weapons to fight, I think,” Ms Courselle said.

It is, she says, very stressful.

Jerry Keogh
Image:
Gerry Keogh

aaaaa

The histories of America and France have been intertwined for centuries through revolutions against tyranny and two wars fighting for liberty.

America used to call France its oldest ally, but under Mr Trump it is now being as turned on, as France, along with the rest of Europe, finds itself in what many would argue is a reckless and unjustified trade war.

It is all doing enormous harm to relations between the US and its European allies.

How Europe now decides to retaliate will help determine the extent of that damage.

Continue Reading

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