ABD Welcomes Fuel Duty Cut, but More Action Needed
The Association of British Drivers welcomed the announcement in the Budget that fuel duty would fall by 1p/litre, and there would be no further rises during 2011.
However, the ABD notes that in 2012, the already high rate of fuel duty is planned to rise twice in line with inflation, and there is even the prospect of a return to the '1p plus inflation' fuel duty escalator that the Chancellor had been reported as saying would be cancelled for the rest of the Parliament. 1
Drivers only being subject to the lower level of duty increase would be dependent on a Fair Fuel Stabiliser, details of which are to be agreed. ABD Chairman Brian Gregory noted: "
“Reading the detailed Budget Report, it is clear that the proposals are very much on the drawing board. The exact mechanism and trigger price for the Stabiliser are subject to consultation, so the benefits appear not to be guaranteed. 2
The ABD calls for a less complicated approach, to freeze or even reduce fuel duty into 2012, noting that Britain's drivers already pay five times over for using the roads.”
ABD Spokesman Nigel Humphries added:
“Although the announcement in the Budget of another £100 million for repairing the blight of potholes is welcome, this pales in comparison to the £10 billion that is estimated as needed to do the job properly. Neglected repairs result in further deterioration and higher costs in the future. 3
The Budget places great importance on fairness and the avoidance of future consequences 4. As Britain's drivers pay around £50 billion each year in motoring taxes, so this investment in making our roads safe has been paid for several times in advance.” 5
NOTES FOR EDITORS
1. Chancellor's Speech on HM Treasury website
2. Budget Report in full, HC836 [pdf]
Page 38: 1.148 In future years, if the oil price falls below a set trigger price on a sustained basis, the Government will reduce the Supplementary Charge [on oil and gas production] back towards 20 per cent on a staged and affordable basis while prices remain low. Fuel duty will increase by RPI plus 1 penny per litre in each such year. The Government believes that a trigger price of $75 per barrel would be appropriate, and will set a final level and mechanism after seeking the views of oil and gas companies, and motoring groups.
3. Daily Telegraph and Sunday Post 20/2/2011
4. Budget Report in full, HC836 [pdf]
Page 4 on 'Fairness'; Page 31
5. Recalling the words in the Chancellor's Speech ,
"But we have already asked the British people for what is needed, and today we do not need to ask for more".
Notes for Editors about the ABD