Car tax changes: Petrol drivers will be ‘thrilled’ at decision to not raise fuel duty
Fuel duty increase would be 'madness' says expert
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They have hinted the decision to not raise the tax could be “just the start” of more pro motoring policies to help road users. His comments come after the Prime Minister hinted the nation’s economic recovery would be powered by “white van men”.
It is thought to be confirmation fuel duty will not be increased in tomorrow’s budget despite recent rumours of a 5p rise.
Howard Cox, founder of FairFuelUK warned driving costs remained “highest in the world”.
He said traditional road users were left feeling “demonised” but praised the decision to not increase the charge.
He said: “It would be churlish not to thank the Chancellor and the Prime Minister for maintaining the freeze in Fuel Duty for a 10th successive year.
“Motorists, van drivers and truckers across the UK will be thrilled at this decision and they will hope this is just the start of more pro motoring policies to come.
“The cost of navigating our roads remains the highest in the world and drivers still feel demonised for all environmental ills, but continuing the cap on duty will be saluted.”
Fuel duty has been frozen at 57.95p per litre since 2011 when George Osborne didn’t raise the charge any further.
The Treasury has estimated the scheme has saved drivers up to £1,200 since it was implemented.
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However, it has also cost the Government possibly billions of pounds of extra revenue at the height of petrol and diesel use.
Revenues for the scheme are expected to drop in recent years as more switch to electric vehicles which do not pay fuel duty costs.
Rishi Sunak didn’t raise the price last year after he claimed people still relied on their vehicles.
Boris Johnson also said he had no plans to increase the tax in the run-up to the 2019 General Election.
Speaking at the weekend, Mr Sunak added: “I would like to be able to keep taxes low for people in general.
“I’m a conservative and I believe in that.”
Just last week FairFuerlUK delivered a letter to the Chancellor signed by 26 Tory MPs demanding fuel duty rates were frozen.
Top Tory heavyweights such as David Davies and Esther Mcvey signed their name alongside former party leader Sir Iain Duncan Smith.
Conservative MP Craig Mackinlay said those from the 10 percent poorest population would suffer the most from an increased.
He said any rise would have a “disproportionate” impact on motorists and would be bad for the economy.
A report from FairFuel and the CEBR predicted a rise in fuel duty would generate “extraordinarily little revenue”.
However they warned a rise would risk jobs, hike inflation and stagnate business investment.
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