RAC Response to 2013 Autumn Statement

Fuel Duty to Remain Frozen

RAC technical director David Bizley said: “While freezing fuel duty is welcome we wanted Mr Osborne to go a step further and reduce the financially punishing 58p duty that is charged on every litre of fuel bought at the pump.

“A cut to fuel duty would have been far more meaningful and beneficial to motorists and the economy. The RAC believes a bold move like this would actually act as a further stimulus for the economy by making it more affordable for companies to do business and for motorists to use their vehicles for work and social purposes.

“Motorists have been benefitting from cheaper prices at the pumps in recent months as retailers have passed on savings in the lower wholesale price brought about by lower oil prices and a stronger pound, coincidentally at the same time as the economy has been improving.

“If the Chancellor had actually cut fuel duty any shortfall in revenue would have been largely offset by increased revenues arising from the growth stimulated by the reduction.”

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