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

Fuel duty increase would be 'madness' says expert

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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.

He said: “Time and time again, Chancellors have proclaimed they are the victims of the 10 years freeze.

“That they have lost billions and billions of tax revenue due to the Tory inspired fiscal policy.

“It’s time they told the truth, to stop the well-financed anti-driver green activists claiming motorists, van drivers and hauliers are unfairly subsidised by keeping Fuel Duty at 57.95p/litre.”

“Everything about the disingenuous rhetoric from the Government assumes consumer and economic behaviour would not change. The CEBR have proved this is a deception.

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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.

They also hinted Prime Minister Boris Johnson had pledged to not raise the tax ahead of the 2019 General Election.

A Treasury source said electric vehicle costs would be the “priority” in the budget instead of raising fuel duty costs.

They said: “More people are still using cars as a safer mode of transport.

“And there is a massive cost to electric vehicles at the moment – that feels like the priority to address.”

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.

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