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Car tax changes: Fuel duty increases 'no big deal' as costs rise by 'negligible amount'

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Any fuel duty increase will see costs rise by a “negligible amount” which will still be easy for road users to manage. Mike Rutherford, spokesperson for AutoExpress, said any increase to pay off coronavirus debt levels would be a “tiny price to pay”.

This will increase fuel duty charges from their current 57.94p per litre for the first time since 2011 when the charge was frozen.

The Treasury has previously claimed freezing the fee has saved the average road users up to £1,200.

However, the Treasury may have lost up to £100billion as a result of introducing the scheme.

The Treasury is also trying to manage a £40blllion hole in public finances as a result of the switch to electric vehicles.

A report from FairFuelUK and the CEBR found any rise in fuel duty would generate “extraordinarily little revenue”.

They warn it would create “economic damage” and could reduce employment by around 8,000 jobs.

They said a rise in fuel duty would hit the poorest 10 percent of the portion who spend twice as much on fuel as richer groups.

FairFuelUK founder, Howard Cox said the Government should be looking to “incentivise” and “not punish” drivers.

He said: “The way forward out of the huge economic quagmire is to incentivise not punish the very people who are at the heart of any commercial post-pandemic recovery.

“The CEBR have predicted that a rise in fuel duty would generate extraordinarily little revenue, but most certainly would risk jobs, hike inflation, and stagnate business investment with the poorest, catastrophically hit the hardest.”



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