- 23 November 2016
- Transport / Logistics Services
In the Autumn Statement the Chancellor Philip Hammond has announced a freeze on fuel duty for the seventh year in succession.
Hammond said in Parliament today: “The oil price has risen by over 60 per cent since January; and sterling has declined by 15 per cent against the dollar. That means significant pressure on prices at the pump here in Britain.
“So today we stand on the side of the millions of hardworking people in our country by cancelling the fuel duty rise for the seventh successive year. In total this saves the average car driver £130 a year and the average van driver £350.
“This is a tax cut worth £850 million next year, and means the current fuel duty freeze is the longest for 40 years.”
While a freeze in fuel duty is welcomed many in the road transport industry wanted a cut. The Freight Transport Association called for a 3p a litre cut as well as the reinstatement of the duty differential for using used cooking oil as a biofuel in commercial vehicles.
The chief executive of the RHA, Richard Burnett said: “The news that Insurance Premium Tax is to rise by 2 per cent comes as a disappointment – a disappointment that will, to an extent, be offset by the news that fuel duty, held at 57.95ppl is to be frozen for the seventh year in a row.
“Obviously a fuel duty cut would have made a real difference to our members’ operating costs but a further fuel duty freeze? We’ll happily take that.”
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