Chancellor surprises motorists by freezing fuel duty – London Business News | Londonlovesbusiness.com

The Chancellor Rachel Reeves delivered her first Autumn Budget and told MPs in the House of Commons that she will freeze fuel duty into 2025.

Reeves promised that the Labour government will not tax fuel at the pumps and the 5p cut will continue for another year which “is a surprise” announcement for motorists.

The Chancellor said, There will be no higher taxes at the petrol pumps next year.

“At a time when the fiscal position is so difficult, I have to be frank with the house that this is a substantial commitment to make.

“I have concluded that in these difficult circumstances while the cost of living remains high and with a backdrop of global uncertainty increasing fuel duty next year would be the wrong choice for working people.

“It would mean fuel duty rising by 7p per litre.

“So, I have today decided to freeze fuel duty next year and I will maintain the existing 5p cut for another year, too.”

Simon Sutcliffe, a Customs Duty Partner at Blick Rothenberg said, “Freezing Fuel Duty and holding onto the 5p cut is a surprise. Increasing duty would have raised almost £5m pa. However, this measure reduces any potential inflationary pressure on commercial movements of goods. Also, this freeze protects these working people whose access to public transport is limited and costly.”

Matthew Briggs, CEO at business fuel card provider, Right Fuel Card:Edenred said, “We welcome the announcement of a continued fuel duty freeze and an extension of the 5-pence-per-litre price cut. Whilst, positively for consumers, fuel prices are on a downward trajectory, there is still work to be done to support those struggling to cover costs.

“Whilst wholesale fuel prices are out of the Government’s hands, we’re hopeful that prices continue to fall for the rest of the year and beyond, as this would benefit both customers and businesses.”