Fuel duty and energy bills 'targeted in upcoming Budget' as Chancellor forced to make 'difficult decisions'
But the Chancellor faces "difficult decisions" thanks to the state of public finances and the wars in Ukraine and Iran hitting Britain, Meg Hillier warned
Fuel duty and help with energy bills may be Budget priorities to help with the cost of living, a top MP has told LBC.
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But the Chancellor faces "difficult decisions" thanks to the state of public finances and the wars in Ukraine and Iran hitting Britain, Meg Hillier's warned.
The Chair of the Influential Treasury Select Committee has said today the Office for Budget Responsibility should look longer term in their forecasting about the nation's finances.
But she insisted it should remain independent to ensure that they can continue to "mark the government's homework".
Andy Burnham has insisted he wants to give Brits more "breathing room" and since entering No10 has announced a string of measures to make some items more affordable - including business rates, energy bills and freezing bus fares.
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And he faces his first Budget on October 28, which he has admitted will mean "difficult decisions" for him and the Chancellor.
Ms Hillier stressed she has no "inside track" on the Budget but warned that "the war in Iran and this continuing situation in Ukraine as well as inflation, are having a big impact on the decisions that the Chancellor and the Prime Minister will have to make".
It's "not an enviable position to be in", she acknowledged, adding "I'm sure he would love to have more leeway... it's a challenging situation".
It's estimated that the Chancellor may have £12billion of his headroom wiped out by higher inflation and debt costs, according to some reports.
But the PM will continue to prioritise the cost of living, Ms Hillier told us.
She said: "That can be everything from looking at fuel duty to cost of heating and so on - who knows.
"I can imagine those sort of ticket, big ticket items for households, could be in the mix, if that's the priority."
However, she warned that "long term stability's pretty key" and it was vital to provide "confidence for businesses" and the markets too, warning against "rapid, short term changes... that stability is hard fought for and is throw away at our peril".
Fuel prices have soared against the continued pressures in the Strait of Hormuz continue to bite, with petrol hitting £2 a litre.
The global oil price has been pushed up to $108 (£80) per barrel, up from $70 (£52) in June 2026 - a roughly 50% rise.
The government's already facing pressure to extend the 5p cut to fuel duty, which will run until the end of December.