Fuel duty will remain unchanged for a ninth consecutive year, it has been confirmed.
Fears had emerged that the tax would be increased to better fund the NHS in November’s Budget announcement after chancellor of the exchequer Philip Hammond refused to accept analysis from the Treasury supporting the ongoing fuel duty freeze.
However, those concerns have eased following confirmation from prime minister Theresa May at the Conservative annual conference in Birmingham.
Currently, around 60 per cent of the price of a litre of petrol or diesel is made up of tax, with VAT of 20 per cent also being charged on most fuel. Fuel duty is expected to raise £28.2 billion for the government in 2018-19.
The decision has been welcomed by motoring groups, with an RAC spokesman pointing out that UK pump prices are currently at a four-year high.
“While there is a silver lining in the form of no rise in fuel duty, darker clouds in the form of higher wholesale costs may well be passed on to drivers at the pumps imminently, so it would have been foolhardy for the Treasury to opt to punish drivers further,” added the RAC spokesman.
“Motorists can breathe a sigh of relief for now. However, it is a shame that each year we have to worry whether the government is about to hit them harder in their pockets.”
The news wasn’t welcomed so much by the Green Party. It says the extra £38 billion that would’ve been collected over the next three years could have funded programmes to encourage walking and cycling.
Ellie Baker, brand manager at Fuel Card Services, comments: “Another year of fuel duty freezes is great news not just for company fleets but for the whole country. A fuel duty rise would’ve inflated the prices on supermarket shelves, putting extra strain on family finances.”
Posted on 4th October 2018
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