Boris Johnson understood and promised at the 2019 Election not to hike Fuel Duty. Following a question put to him by the Sun’s political team at an election press conference, he clearly espoused fuel duty would NEVER be hiked. He also told Howard Cox, that following Brexit, we’d regain control of our VAT too.
Our headline ask is for the Chancellor of the Exchequer to cut Fuel Duty or at the absolute very least maintain the freeze in the level of this punitive fuel tax for the lifetime of this Parliament.
Click here to ask the
Chancellor to Cut Fuel Duty
European nations tax drivers highest in the world. And despite the welcome and much appreciated fuel duty freeze since 2011, when current diesel and petrol tax takes are averaged, the UK is always, without fail, in the top three nations of Europe.
UK Diesel duty with VAT in particular, is always the highest taxed derv in the world too. Other nations tend to see diesel as the commercial heartbeat of economies. Europe's favourable diesel taxation stems from a historical legacy of providing cheaper fuel for the trucking industry.
The UK continues to punish the road haulage industry mercilessly, which severely impacts on the economy and in the current fuel crisis, reduces investing in new drivers and cleaner fuelled vehicles.
The fuel tax data shown here has been sourced from several sources including the RAC Foundation and the EU Transport and Mobility website. Pump prices are fluctuating significantly, but the data in the table remains proportionally indicative of the fuel tax take by European nation.
Rumours are rife that the Treasury is to hike Fuel Duty as anti-driving deterrent in support of COP26 ambitions. In particular we are reliably informed, Whitehall special advisors are advising the Chancellor, that the public will be happy to accept a big fuel duty rise in support of reducing driving and to benefit the environment. This is utterly incorrect assumption and based on an ill-informed green political agenda and uncharacteristic of a long-established tax cutting Conservative philosophy.
A rise in fuel duty does little to help climate change – the trends to fuel economy and the replacement of fossil fuel-based vehicles by greener alternatives is already well established. And with UK fuel duties amongst the highest in the world, most economies that might be generated by higher taxes have already been generated. It will also do little to reduce public borrowing since over the next 20 years fossil fuel usage is expected to decline by about 80% so the yield will largely evaporate.