Duty freeze 'still leaves squeeze'

Duty freeze 'still leaves squeeze'

The Chancellor has shown the red light to a planned September fuel duty rise, but resisted calls to cut duty - much to the disappointment of campaign and motoring groups.

RAC technical director David Bizley said: "George Osborne is one of the few chancellors who has actually reduced fuel duty by cutting a penny off in the 2011 Budget instead of just putting it up like most of his predecessors, and we had hoped he would see the wisdom in doing so again, but sadly that hasn't happened.

"While a further freeze will prevent the hardship motorists already feel from high fuel prices getting any worse, a cut in duty was needed to reverse this punitive charge which is effectively a tax on virtually every British business that uses vehicles as well as daily living as the vast majority of people rely on vehicles for work and everyday life.

"Along with the FairFuelUK campaign we wanted to see a radical and much-needed 3p a litre cut in fuel duty as we believe this would do far more good for the economy than simply freezing it. The economic benefits of a fuel duty cut have been clearly demonstrated in reports produced Centre for Economics and Business Research as well as the National Institute of Economic and Social Research.

"We can only hope Mr Osborne is saving the best news for the autumn in the form of a vote-winning duty cut ahead of next year's election."

Mr Osborne also said that the 2% increase in company car tax would be extended to 2017 and 2018, but there would be an increase in discounts for ultra-low emission vehicles and there will be a reduction in the rate of fuel duty for methanol.

Copyright Press Association 2014