Rishi Sunak has said the Government will “of course” ease the cost of living “where we can”, as he hinted at a cut to fuel duty in next week’s Spring Statement.

The Chancellor said he recognised it was “not going to be easy” for households amid the rising cost of living pressures and vowed to “stand by them”.

Ministers are under pressure from Tory backbenchers to cancel a planned rise in National Insurance Contributions (NICs), which will take effect next month, or to cut duty on fuel amid spiralling costs of petrol and diesel.

Expert analysis suggests inflation will hit 8 per cent this Spring, but officials are reportedly worried the true figure could be as high as 10 per cent – driven by rising energy bills and a hit to global wheat prices caused by the war in Ukraine.

Speaking to BBC’s Sunday Morning programme, Mr Sunak said the cost of living crisis was the “people’s number one priority”.

“I get that, and I know how difficult it is when you are working hard and seeing the price of everything go up every day, every week,” he said.

“And the steps we have taken to sanction Russia are not cost-free for us here at home, and I want to be honest with people that it is not going to be easy.

“I wish Government could solve absolutely every problem and that I could fully protect people against the challenges that lie ahead, but I can’t do that.

“But what I would say is that I will stand by them in the same way that I have done in the past couple of years.

“Where we can make a difference, of course we will.”

Mr Sunak has also hinted that one of the measures in this week’s Spring Statement could be a cut to fuel duty, which makes up a significant proportion of the cost of petrol and diesel in the UK.

Asked about the prospect of a cut, the Chancellor said: “Obviously I can’t comment on specific things, but what I would say [is] I understand that.

“I have a rural constituency, people are incredibly reliant on their cars and this is one of the biggest bills that people face, watching it go up. We’re all seeing that, when we’re filling up our cars.”