BREAKING NEWS: In today’s budget Chancellor George Osborne froze fuel duty for the sixth year in a row claiming that the move equates to a £75 a year saving for the average driver.
With nearly 58 pence per litre being duty, and VAT on top of that, we are relieved that the Chancellor saw sense and avoided applying yet more fiscal pressure on road users and businesses reliant on road transport.
A CEBR report commissioned by FairFuelUK called “The Socieconomic Impact of Lower Fuel Duty” recently found that the lower fuel prices in 2015 have resulted in a 0.6% boost to the UK economy creating an extra £11.6bn of economic activity.
The same report also estimates that if the Chancellor continues to freeze fuel duty for the remainder of the parliament the average UK household would gain by £130 per annum compared with a situation in which an RPI + 1p escalator is put in place.
So, it’s good news, but could we one day dream of a reduction in fuel duty? The figures suggest it would be good for the economy and certainly good for the road transport industry.