FairFuelUK (FFUK) has welcomed the news that there will be a 9th consecutive freeze in fuel duty.

Prime Minister Theresa May confirmed the freeze in her speech to the Conservative Party Conference in Birmingham today (3 October).

There had been fears that duty would be increased in the budget on 29 October.

Howard Cox, founder of the FFUK campaign, said: “The ‘just about managing’ will breathe a huge sigh of relief that duty is frozen for the 9th year.

“Thank you, prime minister, for seeing common sense. It’s now time for this fragile Conservative government to work with 37 million drivers to put together a long-term strategic road transport plan that motivates tax payers, the economy and the environment.”

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Patrick Gallagher, CEO at the CitySprint Group, said: “Today’s news that the freeze on fuel duty is set to continue is a welcome one and good news for business, particularly in this period of uncertainty while the final Brexit deal is being hammered out.

"But alongside this move, we need to see more investment in new infrastructure to support the wider adoption of green vehicles and funding or tax cuts to help make these vehicles easier to buy. Alongside new funding for research and development in this area, this will help encourage a wider shift towards low-emission vehicles.”

The FTA welcomed the announcement, but said the government had once again missed an opportunity to boost economic activity by cutting cut fuel duty.

Christopher Snelling, head of UK policy at the FTA, said: “A 10ppl cut would increase economic activity of nearly 1% in just one year, creating over a quarter of a million jobs. And even just a 3ppl cut in fuel duty would still generate increased economic activity that would generate tax income to almost offset the cut in fuel duty.

"The government would serve UK PLC better by cutting fuel duty to jump start spending and boost economic activity. We’ll continue campaigning for a reduction in rates and hope the government heeds our advice for the next budget.”

Fuel duty

According to FFUK the UK currently has one of the highest fuel duties in the world at 57.95ppl, despite the freeze since 2011.

At 25 September 2018 spot exchange rates, German fuel duty comes in at 50.5ppl, Australian at 21ppl and the US’s average level at 10.4ppl.

Had the fuel duty escalator continued as planned from 2011 onwards, UK fuel duty today would be 83.33ppl, 43.8% higher.