Car tax changes: Fuel duty freeze for tenth successive year should be celebrated

Car tax changes: Fuel duty freeze for tenth successive year should be celebrated

It is understood Rishi Suank will not increase fuel duty during Wednesday’s budget as the reliance on cars during the pandemic is too great. The Treasury had considered a rise of up to 5p per litre but has backtracked as the lockdown has yet to come to an end.

The Treasury is believed to have lost billions of pounds in extra revenue during the decade-long freeze.

But road users have benefited from the project, with The Treasury admitting motorists have saved up to £1,200 as a result of the project.

Howard Cox, founder of FairFuelUk said the results of the freeze should be celebrated instead of chiefs claiming they are “victims” of the scheme.

He added it was incorrect to suggest drivers were “unfairly subsidised” by keeping fuel duty rates low.

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“Anyone can produce a ‘what if’ straight-line extrapolation of the future to justify the lost revenue argument.

“And that is what the Treasury and successive Chancellors have done Budget after Budget to portray themselves as fiscal martyrs.”

FairFuelUK sent a letter signed by 26 Tory MPs to the Chancellor last week demanding the duty was not increased.

They warned any rise would “disproportionately impact” lower-paid workers outside of London.

Furthermore, the Government has also confirmed the introduction of cleaner E10 fuel across forecourts from September.

This is expected to reduce CO2 by up to 750,000 tonnes a year or the equivalent of removing 350,000 cars from the road.

But this will be the second time a fuel duty rise has been considered by Mr Sunak but not delivered. 

There were rumours the charge was going to be increased last March before he said drivers relied on their cars too much for any increases.

Published at Mon, 01 Mar 2021 18:09:46 +0000