A new '10p tax' suggested to the Chancellor... by a billionaire
Newsletter issue – September 2025
John Caudwell, billionaire and Phones 4u founder, has urged Chancellor Rachel Reeves to introduce a 10p per litre tax on petrol and diesel. He claims this could raise £20 billion for the Treasury and help avoid other unpopular tax hikes. His rationale behind the proposal is that fuel prices have dropped from ~190p to ~140p per litre, creating what Caudwell sees as fiscal 'headroom' for taxation.
It is true that fuel is now cheaper in real terms than at any point in the past 20 years. Factors contributing to the drop include: a decade-long freeze on fuel duty, a 5p temporary cut introduced in 2022, falling global oil prices and a stronger Pound.
Caudwell argues this would be less damaging than taxing sectors like farming. He also acknowledges the proposal would be unpopular but insists it's a pragmatic solution to plug fiscal gaps without destabilising key industries.