George Osborne promissed to hold fuel duty for another year which after the previous holds on duty increases means that duty has not been raised for three years. However prior to that increases were ahead of inflation all on the basis of carbon reduction. To persuade us out of petrol cars and into electric, or at least to downsize. At the same time car tax for all except the city cars have climbed inexorably.
This scale may alert us to how much tax on fuel has increased since 1995. Many of those that need cars are living in the rural areas, often need four wheel drive and may have the car that they retired with, Pensions and savings under pressure they are not the bright young things that buy a Prius or some small hot hatch with a low tax threshold. We don’t so much want a freeze in fuel duty but the removal of the carbon tax fuel duty escalator of 3% over inflation between 1993 and 1999. Fuel duty is deemed as a regressive tax that hits the poorest the hardest.
On top of this an immediate removal of FITs and ROCs and carbon tax would reduce electricity bills by 14 – 19% at a stroke. To place this level of cash back into the economy would immediately take thousands out fuel poverty