Autumn Statement 2016 fuel duty frozen for another two years
CHANCELLOR Philip Hammond has continued the freeze on fuel duty in his first Autumn Statement today.
Instead of the planned 2p-per-litre rise in fuel duty, due to come into force in April, he froze the duty again until April 2018.
The hike would have put £1.36 on each tank, adding hundreds of pounds a year for drivers.
Fuel duty has been held at 57.95p per litre since the March 2011 Budget, when it was cut by a penny.
Commenting upon the Chancellor's announcement, RAC fuel spokesman Simon Williams said: “The Chancellor’s commitment to freeze fuel duty will be greeted with relief by motorists and businesses at a time when we know drivers are concerned that fuel prices will rise significantly over the next six months – which might be the case if oil-producing countries that are members of OPEC commit to an oil production cut when they meet this time next week.
“The Chancellor’s decision to extend the freeze shows that he understands that motorists are the backbone of the British economy. It is vital that in such uncertain times, the Government can give as much certainty to them as possible.”
Key points from the Autumn Statement
Here are the Chancellor's proposed changes
National Living Wage increase
National Living Wage rises by 30p an hour giving £500 more a year to lowest paid Brits
Rip-off rental fees banned
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£3.5bn housing investment
Government to inject £1.4bn into affordable housing and another £2.3bn into areas of 'high demand'
U-turn on cuts to Universal Credits
Cash back for three million workers as Chancellor reverses cuts to benefits
Fuel duty frozen for another two years
The Chancellor won't implement the planned 2p-per-litre rise
£1.1bn investment into super-fast internet
The money will fund 5G mobile networks and extension of fibre-optic broadband networks
Income tax-free personal allowance to rise
The tax-free personal allowance will rise £1,500 to £12,500
New NS&I savings bond announced
NS&I to launch new savings bond with a rate of 2.2%from Spring next year
Insurance premiums to increase
Insurance premiums to go up after Chancellor announces two per cent hike in tax
Meanwhile, Road Haulage Association chief executive Richard Burnett said any measure to make the journeys of hauliers more cost-effective will "contribute greatly to the movement of the UK economy".
He added: "Obviously a fuel duty cut would have made a real difference to our members' operating costs, but a further fuel duty freeze? We'll happily take that."
Tory MP Charlie Elphicke described the decision as "a victory for the hard working classes of modern Britain".
He went on: "I'm delighted the Chancellor listened to the concerns raised by so many Conservative MPs. He is absolutely right to put more money in the pockets of hard-pressed families and small businesses."
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Morrisons offer £1-a-litre petrol across the country
Chancellor Philip Hammond to cancel his 2p-a-litre fuel duty hike
As The Sun revealed last week, campaigners have pushed for a 3p cut to fuel duty as they argue that it will pay for itself in the extra stimulus to the economy that it creates.
Speaking before the announcement, FairFuel UK campaign founder Howard Cox said: “If Mr Hammond does freeze duty again next week, it would mean he is continuing George Osborne’s good work.
“For low-income families and haulage companies that might have 50 trucks, this has a huge impact on their bottom lines.
Motorists have been hammered by rising petrol prices over the last few months since the vote to leave the European Union.
Three ways to cut down your fuel costs
Even though fuel prices are rising there are some ways to keep down costs.
1. Make your car more fuel-efficient You can do this by keeping your tyres inflated, taking the roof rack off, emptying your car of clutter and turning off your air con when driving at lower speeds.
2. Drive more efficientlySome ways to do this, include:
– Accelerate gradually without over-revving
– Always drive on the highest possible gear
– If you can, allow your car to slow down naturally as your brake is a money burner
– Re-starting your car is expensive, if you can keep moving
3. Find the cheapest fuel prices Use . All you need to do is enter in your postcode and tell it how far you want to travel (up to 20 miles).
However, last week Sainsbury's, Tesco, Asda and Morrisons slashed their prices by up to 3p per litre, bringing light relief for drivers.
You can now fill up for below £1-a-litre across the country at Morrisons, for the first time since the Brexit vote.
The supermarket is running a promotion giving customers 10p off a litre when they spend over £50.
It is available at the retailer's 333 forecourts and diesel car drivers also get the 10p a litre saving taking them to just above the £1-a-litre mark, until 3 December.
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