You are here: Home - Household Bills - News -

Fuel duty rise on the cards, Hammond hints

0
Written by: Paloma Kubiak
12/09/2018
Squeezed drivers could be hit with the first fuel duty rise in years, the Chancellor hinted during House of Commons questions.

When asked about the impact of a fuel duty freeze on household incomes, Chancellor Philip Hammond said the freeze over the past eight years has already cost the Exchequer £46bn in revenues, adding that it can’t go on forever.

Hammond said: “By April 2019, these freezes will have saved the average car driver £850 compared with the pre-2010 escalator, and the average van driver over £2,100, but it is important we remember the other side of this coin.

“The fuel duty freezes since 2011 have meant that the Exchequer has forgone around £46bn in revenues through to 2018/19, and a further £38bn will be forgone over the Budget forecast period, as a result of these previously announced freezes. For context, that is about twice as much as we spend on all NHS nurses and doctors each year.”

In the past year, petrol has risen by 13p and diesel by 15p, taking it to £1.33p a litre. As such, pump prices are on track to reach the record highs of April 2012, according to the RAC.

‘Not the time to consider a fuel duty rise’

RAC head of roads policy, Nicholas Lyes, said: “Motorists contribute around £46bn of motoring-related taxation to the Treasury each year so pay their fair share in tax. Pump prices are now at their highest level in four years, and given that drivers are spending around £8 more to fill up their tanks each time they are at a petrol station than they did a year ago, we’d argue that this is not the time to be considering a fuel duty rise.

“It is also important to note that the Treasury has been benefiting from the additional VAT drivers are having to pay as a result of higher fuel prices.”

Given the hints of a fuel duty rise in the November Budget, Hammond said: “We understand the pressure that higher oil prices and their feed-through to the pumps presents for individual consumers. We take all such matters into account when setting future policy.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week