UK fuel duty rates frozen for tenth year – Chancellor admits ‘people rely on their cars’
Freezing fuel duty rates will be a major win for the Conservatives from those from lower-income families who will continue to enjoy reduced fuel costs. Prime Minister Boris Johnson previously promised to raise fuel duty costs during his election campaign.
- Budget 2020: Fuel duty rise will damage economy and cost drivers
However, rumours had begun to escalate the prices in a desperate bid to encourage motorists to switch to electric vehicles.
Speaking in the Commons, Rushi Sunak said: “At a cost of £110billion to taxpayer we can no longer afford to freeze fuel duty,
“I’m certainly aware of the fiscal costs and the environmental impacts but I’m taking considerable steps in this budget to incentivise cleaner forms of transportation and many people still rely on their cars.”
Fuel duty currently stands at 57.95pence per litre which is estimated to generate £28,4billion for the Treasury this year.
Freezing fuel duty is thought to cost the Treasury £800million to deliver but is often popular among voters,
Each motorist is thought to have saved around £1,000 over the last decade of fuel duty freezes as drivers save an estimated £1.20 eery time they top-up a 60-litre fuel tank.
Motoring experts called upon the government to freeze fuel duty rates in the run-up to the budget.
The AA said the government had an extra £1million in the motoring budget after an increase in income from VED rates and fuel duty profits and could use the money to endure fuel prices are frozen.
A string of Conservative MP’s were also against the move with 13 Tories form the Blue Collar Causus group adding tech charge would hit blue-collar communities the hardest.
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Experts at FairFuel have warned a rise in fuel duty could cost the Conservatives thousands of voters in Labour heartlands.
The group claimed two in three working-class families would desert the part to return to Labour or other opposition groups.
Conservative former minister, Robert Halfron urged the Chancellor to freeze the duty to avoid widespread impact for people’s finances.
“A fuel duty rise doesn’t just impact motorists but hits food prices, public services, ambulance costs and business costs and could have an impact on employment.
“It could also increase the price of bus fares because a lot of them use diesel.
- Fuel pump prices are at their lowest level since 2019
“People think it’s just a motorists’ issue but it isn’t. I’m sure that millions of working people watching Boris, trust Boris when he said at the election he had no plans for a fuel duty increase.”
However, the proposed 2p per litre increase could still be on the cards for introduction from April 2021.
Campaign team Fair Fuel UK claims Uk drivers are the highest taxed motorists in the UK.
However, petrol and diesel prices have dramatically fallen after coronavirus has reduced the demand and wholesale price of oil.
Government data has shown petrol and diesel prices have fallen for the past five weeks with experts claiming it to be the fastest decline in 20 years.
Rising fuel duty costs could have been a way the government urged motorists to ditch their petrol and diesel vehicles for cleaner alternatives.
The government have already announced a petrol and diesel car ban by 2035 in a bid to meet their zero-carbon targets by 2050.
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