FUEL duty has been frozen for the tenth year in a row as announced in today’s Budget.
It’s good news for hard-pressed drivers – who already pay the most at the pumps in Europe.
1
We explain what we know so far about the fuel duty freeze.
What is fuel duty?
Fuel duty is a tax on fuel and currently stands at 57.95p per litre of petrol, diesel, biodiesel and bioethanol.
VAT (Value Added Tax) is also charged on most fuel.
Rishi Sunak faced calls in the run-up to the Budget to freeze or cut the hated tax.
An RAC poll showed nearly two thirds of drivers wanted the Chancellor to freeze or get rid of it, which would give a boost to those who have no choice but to drive and give a shot in the arm to the economy.
But The Sun revealed yesterday that it is expected fuel duty will be frozen yet again in this year’s Budget.
Tory backbencher Robert Halfon, who leads Fair Fuel UK, said the move shows “cutting the cost of living isn’t just a slogan but a meaningful pledge from Boris.”
The expected freeze will be a huge victory for The Sun’s long-running Keep It Down campaign — and for our readers.
We have persuaded successive Chancellors to halt the annual tax raids on motorists, allowing them to keep almost £1,000 now in total since 2010.
Why did Rishi Sunak freeze fuel duty last year?
In last year’s Budget, Mr Sunak froze fuel duty and cancelled a scheduled 2p-a-litre tax rise at the pumps.
His u-turn came despite a concerted push by Treasury mandarins to hike the tax, and saved families £60 a year.
Announcing the freeze in last year’s Budget, Mr Sunak said: “I have heard representations that after nine years of being frozen, at a cost of £110bn to the taxpayer, we can no longer afford to freeze fuel duty.
“I’m certainly mindful of the fiscal cost and the environmental impacts. But I’m taking considerable steps in this Budget to incentivise cleaner forms of transport.
“And many working people still rely on their cars. So I’m pleased to announce today that for another year fuel duty will remain frozen. Compared to pre-2010 plans, that’s a saving of £1,200.”
SMALL PRINT
Five things hidden in Budget including higher flight costs & no-interest loans
SUPERMARKET SLASH
Sainsbury’s to cut 500 jobs & another 650 at risk in ‘restructuring’
holy smoke!
Price of pack of cigarettes WON’T go up as tobacco duty rise left out of Budget
STEALTH TAX
Pay cut for MILLIONS of hard-working Brits as Rishi Sunak freezes income tax
wish granted
Self-employed to get fourth grant of £7,500, Rishi Sunak reveals
RISHI’S COVID IOU
Rishi’s job-saving Covid bailout hits £407bn – as he unveils tax hikes
More than two dozen Tory MPs wrote to Rishi Sunak urging him not to raise fuel tax in his Budget.
Here are seven ways to get help paying bills if you’re on Universal Credit.
Universal Credit’s tax on workers should be cut to help struggling Brits back into employment, a new think tank report has said.
Theresa May promises to freeze fuel prices again during her Conservative Party conference speech
