The government is trying to show its commitment to support the “hard-working families” of Britain by confirming its intentions to freeze fuel duty for another year.
Prime Minister Theresa May has pledged to maintain the tax on petrol, diesel, biodiesel and bioethanol at 57.95p per litre, meaning this levy has not risen for nine consecutive years.
Speaking at the Conservative Party Conference yesterday (October 3rd), she said: “Some have wondered if there would be a thaw in our fuel duty freeze this year. Today, I can confirm that in the Budget later this month, the Chancellor will freeze fuel duty again.”
This comes after Chancellor of the Exchequer Phillip Hammond was expected to increase the fuel duty in the autumn Budget, saying maintaining the status quo would cost the Treasury £38 million over the next three years.
He added that this is figure is “twice as much as we spend on all NHS nurses and doctors each year”, the Independent reported.
However, fuel duty alone is expected to provide the government with £28.2 billion in 2018/19, while car users are also charged a VAT of 20 per cent.
May stated freezing the fuel duty would help Brits have a “little bit of money left to put away at the end of the month”. This is particularly relevant in the current climate, as drivers have been hit by rising fuel prices lately.
Indeed, the AA reported that unleaded prices rose by 1.1p to 129.5p per litre between August and September, while diesel also increased by 0.7p per litre over the month.
Those who do not have a big savings pot to spend on a brand new car might consider car lease deals instead, paying a monthly fee that will be easier to manage than a substantial one-off payment.