In his latest Budget, Chancellor Rishi Sunak has axed a fuel duty rise in 2022/23 saving fleets and drivers a fortune…

Fuel Duty Rise Axed 

Rishi Sunak has scrapped plans for a rise in fuel duty for 2022/23. The widely anticipated move means that a rise has now been rejected for twelve successive years. Fuel duty will now sit at 57.95 pence per litre, staving off the planned 2.8ppl rise and entailing a loss of £1.5bn for the Treasury. According to government figures, the freeze has saved drivers a cumulative £1,900 on average. 

A number of motoring organisations had called on the government to maintain the freeze prior to the autumn Budget being announced. Many were particularly concerned due to fuel prices hitting a record high over the weekend. It’s also thought that they haven’t yet peaked, placing even more of a financial strain on the nation’s drivers and businesses.

‘A Regressive Tax’ 

Brian Madderson, chairman of the Petrol Retailers Association (PRA), believes fuel duty hits poorer drivers the hardest. He said, “it is a regressive tax which hits poorer families and rural dwellers the hardest as road fuel is an absolute necessity for so many. It could also make government borrowings more expensive to service and even restrict their financial flexibility as we go forward”. He added, “the global energy markets are in turmoil at present as we all try to recover quickly from the effects of the pandemic on our economies, and the UK is not immune from such pressures”. 

Meanwhile, the RAC welcomed the freeze. Simon Williams, a spokesman for the organisation, said  “with pump prices at record highs, now would have been the worst possible time to change tack and hike up costs still further at the forecourt. If duty had gone up, RAC data suggests the average price of a litre of petrol could have reached 147p, taking the cost of a tank to over £80, and diesel an eye-watering 150p”. He nevertheless lamented that the government had decided against a VAT cut on fuel. 

The Feared MOT Rush Has Failed To Materialise – https://autoservefleet.co.uk/latest-news/the-feared-mot-rush-has-failed-to-materialise/

Car Dependence: Brits Rely On Their Cars More Than Ever Before – https://autoserve.co.uk/motoring-news/car-dependence-brits-rely-on-their-cars-more-than-ever-before/

With over 16,000 approved garages, a 24/7 support service and a host of cost-saving offers, we can keep your fleet moving and operational. Call one of our professional Service Advisers on 0121 521 3500 for more details.