I welcome last week’s decision by the Chancellor to continue the freeze on Fuel Duty until.
The Government inherited a series of Fuel Duty rises from the last Labour government planned for last year and this year which have now been scrapped or delayed. Following recent action in last year’s Budget and Autumn Statement to cut Fuel Duty and scrap Labour’s Fuel Duty ‘escalator’, this week the Conservative Chancellor cancelled Labour’s 3 pence per litre (or about 14 pence per gallon) rise planned for August this year.
Thanks to this Government’s repeated action, including last week’s delay, Fuel Duty is now 10p per litre (or around 45 pence per gallon) lower than Labour planned, and motorists will save £159 on filling up the average family car by the end of the year.
Fuel Duty has now been frozen for two years and this is good news for motorists, families and businesses coping with tight finances.
By taking action on fuel pump prices, freezing council tax and cutting income tax for millions of people, the Conservatives are providing real help to people with the cost of living and a boost for Crawley’s economy.
Fuel Duty will have been frozen for 21 months under this Government by the end of this year. Labour legislated for six rises to Fuel Duty for after the general election. The Government cut fuel duty by a penny in the 2011 Budget and announced a series of changes to help families with the cost of fuel.
The 2011 Budget announced that the Government would abolish Labour’s Fuel Duty Escalator and replaced it with a Fair Fuel Stabiliser, which will limit any Fuel Duty rises when the international oil price rises above £45 a barrel.
Stopping Labour’s planned August Fuel Duty rise has been welcomed by business and motoring groups.
Federation of Small Businesses Director General John Walker described the measure as “excellent news” and the Institute of Directors said “The Chancellor has made the right decision, and the wheels of commerce will turn more smoothly as a result”.
Endorsing the action The AA said “This is great news for all motorists as drivers will breathe an enormous sigh of relief with summer holidays about to take off”.
FairFuelUK commented that “the Government has listened and have acted for the good of struggling consumers across the UK. This is democracy at its very best where a Government and a Chancellor can review decisions, and act with fairness and common sense”. The Road Haulage Association remarked “the duty increase would have added £1,200 a year to the cost of running a truck. More widely, the Chancellor’s decision will be welcomed by businesses and consumers across the entire economy”.
I agree with the RAC Foundation who said that “this is good news for drivers and good news for the country”.