UK govt cuts fuel duty by 5p a litre

The UK government will cut fuel duty by 5p per litre, at a cost of £5bn, with the reduction to take effect from 6pm on Wednesday, Finance Minister Rishi Sunak has announced.

Delivering his Spring financial statement to parliament on the day UK inflation hit 6.2% - its highest level for 30 years - Sunak said the cut would remain in place for a year. He also said value added tax was being cut to zero on energy saving devices, such as solar panels, heat pumps and wind turbines.

British households have been crippled with a cost-of-living crisis driven by surging food and energy prices. They also face a tax rise next month after Sunak broke a promise not to raise them as set out in the Conservative government's last election manifesto.

Further pain is due when the energy price cap rises by a staggering 54% in April - and another expected in the autumn.

The Office for Budget Responsibility on Wednesday said it now estimated inflation would average 7.4% this year - almost four times the Bank of England's target rate of 2%. Last October, it forecast inflation of 4% this year.