Mr Honeyford said: “People are being hammered by rising costs across the board, and the price of diesel going above £2 a litre is another huge blow for working families and businesses.

“The UK Government previously cut fuel duty by 5p a litre to help motorists, but the situation we are facing now is completely different and that simply does not go far enough.

“As fuel prices rise, the Treasury automatically takes in more VAT. Government should not be benefiting from this crisis while people struggle to fill their cars just to get to work.

“That additional VAT revenue should be handed back to motorists through an immediate temporary cut to fuel duty and reduction in VAT on road fuel. This should be about helping people, not increasing the tax take.

“We also need the same urgency for families heating their homes. Around two-thirds of households here depend on home heating oil, yet that market still lacks proper regulation and consumer protection.

“People cannot control conflict in the Middle East or global oil prices. Government, however, can control the tax people pay and the protection consumers receive.

“Hard-working people need help now. The UK Government must act.”