Chancellor threatens a Fuel Duty Hike in Treasury Questions

Philip Hammond’s comments yesterday (April 9) from the House of Commons Despatch box hints at a future fuel duty rise: Mr Hammond said:

“Fuel duty freezes for motorists must be balanced against the need to fund public services, according to Philip Hammond.

The Chancellor added the freeze on duties levied on petrol, diesel and other fuel purchases continues to be kept under review.

The Office for Budget Responsibility forecasts fuel duty receipts will raise £28.3 billion in 2019/20, although campaigners argue billions of pounds more could have been raised since 2010 for various projects without the freeze.

Appearing in the Commons, Mr Hammond was asked about the average annual savings to hauliers since 2010. He replied: “Fuel duty has been frozen for nine consecutive years, saving money for all of those regularly using our roads.

“I can confirm the average road haulier has saved £23,300 per vehicle on fuel since 2010 compared with the pre-2010 escalator plans. However, the benefits to hauliers and motorists of freezing fuel duty must be balanced against the costs of the exchequer in the context of our need to fund our public services – and so we continue to keep it under review.”

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