George Osborne scraps 3p-a-litre fuel duty AGAIN
The planned hike would have meant drivers filling an average tank
would have had to fork out almost £2 more for petrol or diesel
Wednesday 05 December 2012
Hard-pressed drivers were given some respite today when Chancellor George Osborne decided to scrap the 3p-a-litre fuel duty increase planned for January 2013.
The planned hike would have meant drivers filling an average tank would have had to fork out almost £2 more for petrol or diesel.
But Mr Osborne said he was not merely postponing the 3p rise until April 2013 but axing it altogether.
He said it would help families and businesses across the country.
The decision was welcomed by AA president Edmund King. He said: "This decision avoids a new year's headache and a long hangover for all drivers and is very much welcomed by the AA.
"Big Ben's chimes ringing in a nearly £2-a-tank hike in petrol and diesel prices would have back fired on the Government and economy."
He went on: "The Treasury may have thought that a fuel duty increase in the winter, when petrol is usually cheaper, would have been easier. But, toasting the new year with Champagne at a lower duty rate than road fuel underlines successive governments' failure to spot the difference between a luxury and a necessity.
"In 20 years, UK motoring has cut its fuel consumption by 20% (12.8 billion litres), but contributes 144% more (£15.81 billion) in fuel duty tax.
"In the last financial year, the Treasury collected its second highest-ever haul of fuel duty from UK drivers - a whopping £26.8 billion.
"That is two and a half times more than what is spent on UK roads (£9.8 billion), even before receipts from Vehicle Excise Duty, VAT, company car tax and new car tax are added."
RAC Foundation director Professor Stephen Glaister said: "Yesterday an official report showed transport was the biggest area of household expenditure bar none, with fuel costs a big and rising part of that. Today it is a relief to see the Chancellor has read it and acted on it.
"Britain's 35 million motorists each average about 7,000 miles a year. Cancelling this rise will save them a combined total of more than a £1 billion annually, money which they can use to ease their financial headaches and help support the economy through their own spending.
"It's not as if drivers aren't already paying a huge amount in tax. Even without an increase, 60% of the pump price goes to the Exchequer."
Quentin Willson of FairFuelUK said: "We have worked tirelessly to convince MPs and ministers that the 3p rise would be enormously damaging to the economic recovery.
"To their credit the Treasury and the Chancellor have engaged constructively and have made the right decision."
Friends of the Earth's executive director Andy Atkins said: "Motorists will continue to pay a heavy price until we wean our cars off of their dependency on petrol and diesel.
"A few pence off fuel duty is simply tinkering under the bonnet. Ministers must completely overhaul their motoring strategy so we can have cleaner, cheaper transport in the future."
Among groups welcoming the fuel-duty axing were the British Retail Consortium which said it would help boost consumer confidence.
Campaign for Better Transport said the decision was in "sharp contrast to 10 years of above-inflation rail fare rises".
- 1 Man on naked bike ride gets ejected after becoming aroused
- 4 Ann Summers survey reveals the UK's favourite sex position
- 5 Ayyan Ali: Pakistan's top model now appears in the courtroom rather than on the catwalk
Man on naked bike ride gets ejected after becoming aroused
Caitlyn Jenner's mother Ester thought her daughter, formerly known as Bruce Jenner, had transitioned for money
Charles Kennedy 1959-2015: A gifted, compassionate politician whose career was cut short by the 'demon drink' - latest news
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Jaden Smith wears gender fluid dress to high school prom with Hunger Games actress
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Why this year's general election was the most unfair in Britain's history
£18000 - £45000 per annum: Recruitment Genius: A Sales Executive is required t...
£35000 - £40000 per annum: Recruitment Genius: Are you inspired to bring new a...
£14000 - £18000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £18000 per annum: Recruitment Genius: This company are a world leadin...