Ministers are urging Chancellor John Healey to postpone planned fuel duty increases, warning that they could worsen pressure on households and businesses while fuel prices are already high. The RAC put diesel at a record £1.99 a litre, and ministers fear it could reach £3 if US President Donald Trump restricts diesel exports to Britain.

Current plans would raise fuel duty by 3p a litre in January and 2p in March, then end the freeze with a further 1p rise in April; VAT would bring the total increase to 7.2p a litre. That would add almost £4 to filling a family car with petrol. Treasury sources say no decision has been made, while keeping the existing 5p-a-litre cut would cost £2.4 billion a year.