DRIVERS are to benefit from a 5p cut in fuel duty tax - an attempt to ease the burden of the cost of living crisis.

Chancellor of the Exchequer Rishi Sunak made the announcement this afternoon (March 23), with the cut coming into effect at 6pm tonight.

On current readings, this cut is likely to save around £3.30 per full (55 litre) tank.

Mr Sunak told parliament: "Today I can accounce, for only the second time in 20 years, fuel duty will be cut.

"Not by one, not even by two, but by five pence per litre.

"The biggest cut to all fuel duty rates ever and while some have called for the cut to last until August, I have decided it will be in place until March next year, a full twelve months."

The average cost of a litre of unleaded fuel in the UK is currently 167.3p, whilst the average diesel cost is 1.79.9p.

The Manager of Neptune Fish and Chips, Earle Street, told Nub News: "Everything is increasing in price. All small businesses are struggling for money in our pockets.

"This fuel cut isn't going to make a difference. We used to spend £20 to £30 per week in fuel on drivers and it is now more like £50 to £60 per week.

"The fuel goes very quickly, it is really hard for everybody and I don't know how we can survive if these prices continue."

Mr Sunak also raised the threshold at which workers pay national insurance by £3,000 and announced a further 1p reduction in income tax by 2024.

The fuel duty tax cut will last until March next year.

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