Fuel duty has been frozen for a fifth year in a row in today’s Budget.
The chancellor George Osborne confirmed the news earlier, meaning that following a 1ppl cut in 2011 fuel duty has now been frozen for each successive year since.
Following the autumn statement late last year, it looked like fuel duty would be raised by the rate of inflation come April, but after lobbying by the likes of FairFuelUK (FFUK) supported by the RHA, FTA and Association of Pallet Networks, the chancellor has maintained the status quo.
Howard Cox, head of FFUK, said: “Our intense lobbying and campaigning hit home at the Treasury. By not hiking fuel duty Osborne has ensured that £5bn is not taken from consumer spending in this Parliament. His decision has ensured continued growth in GDP, low inflation and new jobs will not be compromised, with added benefits of more VAT, income and corporation tax revenue too.”
RHA chief executive Richard Burnett welcomed the news too: “A tax on diesel is a tax on the entire economy - the vast majority of which is carried on the back of a truck.
“It has been widely publicised that the economy is slowing down yet the one area that remains buoyant is the retail sector. The Chancellor’s decision to freeze duty will keep money in people’s pockets – money that will help retailers and provide a sound base for economic recovery,” Burnett said.
However, FFUK and its partners had been pushing for a 3ppl cut in duty to supercharge the UK economy.
James Hookham, FTA MD of policy and communications, said: “A further freeze of duties is welcome but the chancellor missed a chance to give a boost to the stuttering economy by reducing the tax on an essential business input.”
