Fuel duty 'may never rise again' 17 Mar 2016

Is Chancellor brave enough to raise fuel duty in the future?

The Institute for Fiscal Studies has suggested that fuel duty may "never rise again".

According to reports, the IFS argues that if the Chancellor is not prepared to increase the rate of duty when oil prices are low then what are the chances that he would do so when their increase?

Responding to the report, Steve Gooding, director of the RAC Foundation, said:

“Only a brave driver would bank on the fuel duty freeze lasting forever.

“Near-term, Treasury projections show fuel duty revenue edging up as the economy grows and car sales increase. There are now a record 31 million cars in the UK, a number that’s likely to rise.

“But who knows what surprises are lurking round the corner for the Chancellor and he could be forced into a change of heart on fuel duty rates no matter what the price of oil is doing.

“At the same time, the Committee on Climate Change hopes that by 2030 some 60% of new cars sold will be at or close to zero emissions. And that will be bad news for a Chancellor reliant on fuel duty income. If the fiscal black hole becomes too big Mr Osborne will have to fill it from somewhere, however difficult that decision might be.”



Philip Gomm – Head of External Communications – RAC Foundation

philip.gomm@racfoundation.org | 020 7747 3445 | 07711 776448 | 020 7389 0601 (ISDN)

Notes to editors:

The RAC Foundation is a transport policy and research organisation that explores the economic, mobility, safety and environmental issues relating to roads and their users.

The Foundation publishes independent and authoritative research with which it promotes informed debate and advocates policy in the interest of the responsible motorist. All the Foundation’s work is available at: www.racfoundation.org