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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