RAC response to Autumn Statement

RAC technical director David Bizley said: “The Chancellor had little option but to listen to the voice of British motorists and businesses and scrap the 3p fuel duty rise planned for January otherwise he would have faced a national outcry.

“The RAC and FairFuelUK have worked tirelessly behind the scenes to encourage politicians to recognise the significant impact the price of fuel is having on our lives and how it is stifling the economy, inflating retail prices and reducing our competitive position against Europe.

“Even though fuel remains far too expensive we do appreciate that ministers and MPs have entered into constructive dialogue with the RAC and FairFuelUK.

“It is good news an extra £1bn is to be spent on roads, including four major new schemes to upgrade key sections of the A1, bringing the route from London to Newcastle up to motorway standard, link the A5 with the M1, dual the A30 in Cornwall and upgrade the M25. These important improvements will make a real difference to the lives of thousands of motorists every day.

“We strongly urge the Government to launch a thorough review of how motorists are taxed. The Government can no longer justify the second highest fuel duty level in Europe, almost 60% of the price on the forecourt, when only a fraction of this revenue (around £45billion) is actually spent on road building and maintenance.

“The Government can no longer justify the second highest fuel duty level in Europe, almost 60% of the price on the forecourt, when only a fraction of this revenue (around £45billion) is actually spent on road building and maintenance.

“Our members want to see a fairer and more transparent system of motoring taxation which is why the RAC’s is calling on the Government to come clean by putting the amount of duty and VAT on motorists’ fuel receipts so they can see how much they are paying to the Treasury every time they fill up.

“As well as harming the economy, the RAC has found the high price of fuel is keeping people apart. Eighty-five per cent of motorists say it is having a negative impact on their social lives and 75% have cut out journeys to save money. Most disturbingly, 6% also tell us they have slept in their cars to avoid the high cost of commuting.”*

*Based on a survey of 9,284 people conducted by the RAC online from 28–30 November 2012.