Billionaire Calls for 10p Fuel Tax

John Caudwell, billionaire entrepreneur and founder of Phones 4u, has urged Chancellor Rachel Reeves to introduce a 10p per litre tax on petrol and diesel. He claims the measure could generate around £20 billion for the Treasury, potentially helping to avoid other, less palatable tax rises.

Caudwell’s argument is based on the recent drop in fuel prices — from around 190p to 140p per litre — which he sees as creating fiscal “headroom” for an increase in duty. Fuel is now cheaper in real terms than at any point in the last two decades, thanks to a combination of factors: a decade-long freeze on fuel duty, the 5p temporary cut introduced in 2022, falling global oil prices, and a stronger pound.

He suggests that this approach would be less damaging than raising taxes on sectors such as farming. While acknowledging that the proposal may prove unpopular, Caudwell insists it is a pragmatic way to close the fiscal gap without putting undue pressure on key industries.