Budget 2024 live: Rachel Reeves faces budget questions after £40bn tax rise

Simon Browning
Transport producer

Image Source, Environmental Protection Agency

The Chancellor has decided not to change fuel duty as, following much speculation, changes will be introduced that will lead to higher petrol costs for drivers across the UK.

Reeves said: “Keeping the 5p cut and freezing fuel duty again will cost more than £3 billion next year. At a time when the financial situation is so difficult, I must be frank with the House, this is a serious commitment.”

“I have concluded that in these difficult circumstances, while the cost of living remains high, increasing fuel duty would not be the right choice for working people. “This will mean a 7p per liter increase in fuel duty,” she added.

“So I have today decided to freeze fuel duty next year and will leave the 5p reduction in place for another year. There will be no increased taxes on gas stations next year.”

Simon Williams, chief executive of motoring body the RAC, said drivers would breathe a huge sigh of relief.

“Eight out of ten drivers tell us they depend on their vehicle for travel, while 70% of commuters living in rural areas have no viable alternative to getting to work other than using a car,” said He. .

“It is also worth remembering that today 56% of the total cost of a liter of gasoline is already subject to tax in the form of fuel duty and VAT, which is levied on top,” he added.