Statement on reports government is considering ending fuel duty freeze

Following reports that the government is considering ending the current fuel duty freeze, RAC head of roads policy Nicholas Lyes said:

“UK motorists already pay some of the highest fuel duties in Europe – with VAT also charged on every litre of fuel sold. This, coupled with fuel prices being at their highest in more than three years means that drivers are increasingly being squeezed at the pumps. During this very period, motorists have also seen tax on their car insurance premiums double. Overall, it means the Treasury is now collecting more than £40bn a year from drivers in motoring-related taxation, so there is a very strong argument that motorists are already paying their fair share of tax.

“It is also the case that for many people, having easy access to a car is essential – especially where public transport is patchy or it simply isn’t practical to walk or use another form of transport. And for some, a car is a lifeline, especially for those in rural communities.

“By the Treasury’s own admission, lower fuel duty rates actually boost economic growth and consumer spending which offset any revenue loss. Given the evidence, we do not think there is any justification for the Chancellor to raise fuel duty.”