The government has announced fuel duty will be frozen at the current rate in the Spring Budget, in a major tax break for UK motorists
Chancellor Jeremy Hunt confirmed an extension of the 5p per litre cut on petrol an diesel will be maintained, with a freeze extended for another 12 months.
“The Shadow Chancellor complained about the freeze on fuel duty and Labour has opposed it at every opportunity,” Hunt told the Commons.
“The Labour Mayor of London wants to punish motorists even more with his ULEZ plans. But lots of families and sole traders depend on their car.”
Hunt claimed the freeze would “save the average car driver £50 next year and bring total savings since the 5p cut was introduced to around £250.”
Without the intervention, fuel duty would have increased by 13 per cent this month,” he added.
The policy is estimated to cost the Treasury around £5bn but will not narrow space for other tax breaks as the it has been frozen since 2011. Stated government policy is actually that fuel duty should rise in line with inflation.
It comes after the average price of petrol and diesel rose by 4p and 5p a litre in February, the biggest increase in five months.
Unleaded is up to 144.76p, adding more than £2 to the price of a tank, while diesel has increased to 153.22p, according to analysis from motoring group the RAC.
Ahead of the Budget, Hunt outlined his desire to bring down the tax burden, which is forecast to hit record levels regardless of today’s announcements.
