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Autumn Statement: what it means for motoristsBack

StatementToday, the Chancellor of the Exchequer announced in his autumn statement that, as expected, there would be a freeze on fuel duty. He also said that tax discs would be phased out by October 2014.

The rate is fuel duty is set to remain at 57.95p per litre until 2015 which is the same as it has been since March 2011.

The Chancellor also announced that the existing tax system whereby motorists display their tax disc within their car to show they have paid vehicle excise duty, will be replaced with a new electronic system.

The new system which is likely to be introduced in autumn 2014 will enable drivers to pay for their tax disc via direct debit.

Trusted Dealers have been at the forefront of a campaign to urge the Chancellor to reduce the rate of fuel duty rather than maintain it at the existing level.

In a statement on Tuesday, managing director Neil Addley urged the Chancellor to reduce fuel duty by 10p per litre following the results of a survey which revealed motorist’s telling attitudes towards the sky high costs.

Following the Chancellor’s statement today, Neil Addley said: “Mr Osborne has kept to his promise of freezing fuel duty until 2015, which goes some way towards supporting motorists but does not tackle the already vastly inflated prices we pay at the pump.

“Our survey showed an overwhelming majority of the UK population (79.9 per cent) would choose a cut in duty on fuel over any other tax costs including alcohol (8 per cent) and cigarettes (6.8 per cent),” he added.

Quentin Willson, FairFuelUK’s lead campaigner, said: “The Chancellor needs to understand that with up to three quarters of the working population commuting daily by car or van, high fuel duty is a burden on UK productivity.”

In November 2003, the average price of petrol was 76p per litre, rising by 71 per cent to the current average of 129.89p per litre.

Since March 2011, the UK duty rate for unleaded petrol, diesel, biodiesel and bioethanol has been 57.95p per litre, with VAT of 20 per cent also levied on that duty and then on the fuel price.

 

 

Posted by Leana Kell on 05/12/2013