Sunak 'to unveil help' for those most in need

The United Kingdom's finance minister, Chancellor of the Exchequer Rishi Sunak, is expected to announce support for those hardest hit by the cost of living crisis in his spring statement on Wednesday.

The chancellor has hinted that he will cut fuel duty tax as part of a package of support measures to counter the impact of soaring inflation and energy bills.

Sunak is also considering "lifting tens of thousands of low earners out of paying national insurance" taxes altogether, The Times reported.

The UK government has been facing mounting pressure to act as prices for vehicle fuel have reached record highs. It follows oil prices soaring to more than $100 a barrel amid market fears about the crisis in Ukraine.

Higher than expected tax revenues and positive economic forecasts mean the chancellor has tens of billions of pounds available to fund support measures, said the Daily Mail.

But Sunak will resist pressure to increase wider public spending, particularly on defense, said the Financial Times.

Speaking to Times Radio, Sunak said that fuel duty is "one of the biggest bills that people face" and that he was "working night and day to do what I can to help".

He added: "Where we can make a difference, where I can make a difference, of course I will and that has been my track record and it will continue to be how I conduct myself in this job."

The measure on fuel duty, which is included in the price paid for petrol, diesel and other fuels used in vehicles or for heating, is expected to be only temporary while oil prices are high.

A report by the Resolution Foundation think tank has claimed that the bottom half of earners would be better helped by an increase to pensions and benefit payments, which it said would have more impact than any delay to the planned rise in national insurance tax contributions.

Personal finance expert Martin Lewis, founder of the MoneySavingExpert website, described fuel and energy price rises as "catastrophic" and called for the government to intervene.

Speaking on the BBC's Sunday Morning program, Lewis said: "There is absolute panic, and it has not started yet. It's not something money management can fix. We need political intervention."

Addressing the cost of living, Health Minister Sajid Javid, the former chancellor, told BBC Breakfast on Monday that help had already been provided with the energy plan previously set out, and noted that the government had not raised fuel duty in 11 years.

He said: "It's also important I think, at a time like this, to keep the economy strong and the fact that just last week, we heard that our unemployment rate is back down to 3.9 percent, which is one of the lowest rates that we've had."