Fuel duty freeze continues - RAC reaction
No VAT cut on public EV charging, but 'porting' proposal could lower costs
Following the announcement made by Chancellor John Healey in today's Budget, RAC senior policy officer Rod Dennis said:
“While drivers may breathe a mild sigh of relief knowing that fuel duty isn’t about to suddenly go up, many are likely to be disappointed the Chancellor didn’t go further to support them – not least as the freeze is only in place until next summer. RAC research published yesterday showed nearly two-in-three regular drivers wanted cuts to duty or VAT on fuel, with a similar proportion now cutting back on other spending because of the high cost of fuel.
“A freeze only avoids making an already difficult situation worse – it doesn’t make filling up any cheaper. And it’s worth remembering that pump prices still soared this summer, despite fuel duty being at this very same reduced rate.
“Drivers will now have to hope for an easing of the international conflicts that have pushed up oil prices and disrupted fuel supplies if pump prices are to come down in a meaningful way.
“RAC research shows high fuel prices are prompting more people to consider going electric. But those who can’t charge at home may be frustrated that VAT wasn’t cut on public charging to make it more affordable. Drivers who rely on public chargers continue to pay the full 20% VAT rate, which is far higher than the 0% currently charged on domestic electricity in Great Britain.
"Reducing VAT on public charging would have been an obvious way for the Government to make the switch more accessible for more people. Instead, following its review of public charging costs, it appears to be exploring a different approach that would allow drivers to use lower-powered public chargers at the same cost as charging at home. We look forward to hearing more details on this."
For more data and analysis on fuel prices, visit RAC Fuel Watch
Press team
