By David Milliken, William Schomberg and Andy Bruce LONDON (Reuters) -British finance minister Rishi Sunak cut fuel duty and softened some of a looming payroll tax increase on Wednesday as he sought to alleviate a severe cost-of-living squeeze against the backdrop of slowing economic growth. But with inflation set to hit a 40-year high of nearly 9% later this year, government forecasters said Britons faced the biggest hit to their living standards since records began in the late 1950s – even after Sunak’s measures. In a half-yearly budget update overshadowed by the conflict in Ukraine, Sunak s…