Increase in fuel tax in budget?

HillStreetBlues

Mildly_Miffed said:

Fuel duty unchanged - the 5p discount remains for another year.

Amazing when they don't increase tax it's a discount.

Mildly_Miffed

HillStreetBlues said:

Mildly_Miffed said:

Fuel duty unchanged - the 5p discount remains for another year.

Amazing when they don't increase tax it's a discount.

In this case, it literally is, though.

2010 - 58.95p/litre duty
2011 - reduced to 57.95p
2022 - 12mo temporary reduction to 52.95p due to Ukraine
2023 - reduction extended by 12mo
March 2024 - reduction extended by 12mo
October 2024 - reduction extended by 12mo

BTW, inflation alone would take 2010's 58.95p to 88.47p today.

ElefantEd

Ridiculous, it's not like climate change is going away. I seem to remember that a few years ago there was an agreement between all the parties (or at least Tory and Labour) that fuel duty would rise year on year as a nudge to encourage greener forms of transport (or at least more efficient ICE). I don't know who broke the agreement, or if I indeed I am imagining the whole thing, which is likely as it seems much too sensible!

WellKnownSid

ElefantEd said:

Ridiculous, it's not like climate change is going away. I seem to remember that a few years ago there was an agreement between all the parties (or at least Tory and Labour) that fuel duty would rise year on year as a nudge to encourage greener forms of transport (or at least more efficient ICE). I don't know who broke the agreement, or if I indeed I am imagining the whole thing, which is likely as it seems much too sensible!

To be fair, petrol is already 5, 6, 7, 8 or more times more expensive than electricity per mile for those who can charge at home so a few pence per litre is unlikely to nudge many.  One might also deduce that core labour voters many working people will be running older ICE vehicles, hence would be less likely to be impacted by increased first-year VED changes (doubling over 75g/km CO2), but negatively impacted by fuel duty.

An ICE Vauxhall Corsa is now going to cost around £400 for it's first-year VED, a Range Rover could be £5.5k.

Giving clarity on the BIK rates for EVs is now making me think seriously now my company have brought in a salary sacrifice scheme...

Car_54

ElefantEd said:

Ridiculous, it's not like climate change is going away. I seem to remember that a few years ago there was an agreement between all the parties (or at least Tory and Labour) that fuel duty would rise year on year as a nudge to encourage greener forms of transport (or at least more efficient ICE). I don't know who broke the agreement, or if I indeed I am imagining the whole thing, which is likely as it seems much too sensible!

Let me give you a clue. It can't have been Labour in the past 14 years.
 

macman

The elephant in the room is of course that there are no plans yet announced, or even admitted, as to what is going to replace fuel duty, as it remorselessly declines year on year as more EV's come onto the roads.
I think the revenue was just shy of £25bn last tax year. That's a gigantic hole to fill.

Herzlos

It's unlikely to hit EV's more than combustion though. Most likely is just a massive hike to VED for everything.