Fuel
duty freeze until 2015
Welcome
news for UK motorists.
The likely combined effect of the fuel duty freeze announcements
during the term of the present Coalition Government is around
20p a litre or £11 on a tank of petrol in an MGV8 which
would cost between around £75 to £80 depending on
location.
Reports on
taxation matters affecting classic car motoring and UK budget
reports. More
Posted: 131001
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George
Osborne announced during his speech at the Conservative
Party conference in Birmingham yesterday that he
will freeze fuel duty until 2015 by cancelling a
2p a litre rise that was due to come into force
next year in September. However he added that the
money to pay for the freeze had still to be found
but during a BBC Radio 4 interview this morning
the Prime Minister, David Cameron, said that as
the fuel duty freeze was essential he was confident
the funding would be found. The pledge was welcomed
with caution by motoring organisations
who expressed concerns that it is conditional upon
finding further savings which will involve discussions
with the Conservative Party's coalition partners,
the Liberal Democrats, over how to find the funds
to replace the loss of frozen fuel duty tax revenues.
The pledge means that fuel duty will have been
frozen for four years by the time of the next
general election in May 2015. It follows the announcement
in the Budget in March 2013 that "the next
planned rise in the fuel duty" would be postponed
so taken with the earlier decisions on postponing
fuel tax that has provided an effective freeze since
the last rise in January 2011 during a period when
prices at the pumps have continued to rise. Reports
say Conservative Party aides suggest the party will
fight the 2015 election claiming that a litre
of petrol is 20p cheaper than it would have been
under Labour's proposed fuel duty escalator for
above-inflation increases. |
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