Autumn Budget 2021: fuel duty frozen

Chancellor of the Exchequer announces that fuel duty will remain frozen once again in light of high petrol prices

The Chancellor of the Exchequer has delivered his 2021 Autumn Budget, with fuel duty remaining frozen at 57.95p per litre.

Speaking in the House of Commons, Rishi Sunak said: “With fuel prices at their highest level in eight years, I’m not prepared to add to the squeeze on families and small businesses, so I can confirm from today the planned rise in fuel duty will be cancelled.”

Fuel duty has been frozen since 2011 and has been due for an increase in the past two Budgets. In March 2021, Sunak also spoke of a planned increase, but said he had scrapped it in order to “keep the cost of living low”.

The Autumn Budget comes just days after petrol prices hit a record high of 142.94p per litre, prompting Sunak to once again delay the increase.

Brian Madderson, chairman of the Petrol Retailers’ Association (PRA), commented: “The Petrol Retailers’ Association welcomes the Chancellor’s confirmation in today’s Budget that fuel duty will continue to be frozen for a further 12 months. This will be the 12th year in a row that this tax has been unchanged.”

He added: “With pump prices at an eight-year high, PRA has been lobbying Government and the Treasury, in particular outlining the potentially damaging effects on the economy and household budgets of even an inflation-linked rise, so it is positive to hear the Chancellor’s commitment.”

While campaign group FairFuelUK said it “warmly welcomes” the freeze, founder Howard Cox claimed it was “an opportunity missed, too”.

He said: “With pump prices at their highest ever, meaning the Treasury is wallowing in a £1billion unexpected windfall, it was a time for the Government to have cut fuel duty significantly.”

There were no other motoring announcements in Sunak’s Budget, despite ongoing discussions at the Transport Committee about the possibility of a road pricing system as a replacement for existing vehicle excise duty.

Check out the government's plans on road pricing here...

Recommended

Company car tax guide 2021/2022: everything you need to know
Executive saloons make popular company cars
Consumer news

Company car tax guide 2021/2022: everything you need to know

Company car tax is bound up in a complex net of emissions, salaries and a car's value; we explain how the system looks for the 2021/22 Financial Year
26 Nov 2021
Dashcam-upload portal reports spike in ‘dangerous driving’ videos
Dash cam
News

Dashcam-upload portal reports spike in ‘dangerous driving’ videos

Big increase in citizen policing on British roads pays dividends for hard-pressed police forces
25 Nov 2021
VED road tax: how much does it cost?
car tax calculator
Consumer news

VED road tax: how much does it cost?

Confused by VED road tax? Our comprehensive guide explains how much you'll pay on your next car
22 Nov 2021
Prime Minister to confirm plans for electric car chargers in every new home built in UK
Home charging point
News

Prime Minister to confirm plans for electric car chargers in every new home built in UK

England will be the first country in the world to introduce mandatory electric car charging points for new-build homes
22 Nov 2021

Most Popular

New seven-seat Dacia Jogger priced from £14,995
Dacia Jogger - Munich front
Dacia Jogger

New seven-seat Dacia Jogger priced from £14,995

Pre-orders open for the new Dacia Jogger ahead of 2022 deliveries, and low prices make it Britain’s cheapest seven-seater
1 Dec 2021
New Hyundai i20 N Line 2022 review
Hyundai i20 N Line - front
Hyundai i20 Hatchback

New Hyundai i20 N Line 2022 review

The new Hyundai i20 N Line hatch offers fun without the hot N car’s compromises
3 Dec 2021
Toyota to offer specialized electric car ‘hubs’ for bZ4X sales
Toyota bz4x
Toyota

Toyota to offer specialized electric car ‘hubs’ for bZ4X sales

Dealers will deliver series of specialized EV retail points to sell Toyota’s first bespoke EV, the bZ4X SUV
2 Dec 2021