In his latest budget, Chancellor, George Osborne, confirmed that fuel duty will be frozen as expected, while claiming that motorists will pay 20p less per litre than under the previous Government. This will come as a welcome relief to fleet providers and motorists, who saw petrol prices soar to as much as 138.32ppl a year ago. However, the Chancellor resisted calls to cut duty, which has disappointment some campaign and motoring groups. RAC's technical director, David Bizley, said: Bizley said: 'George Osborne is one of the few chancellors who has actually reduced fuel duty by cutting a penny off in the 2011 Budget instead of just putting it up like most of his predecessors, and we had hoped he would see the wisdom in doing so again, but sadly that hasn't happened. 'Fleet drivers, and those responsible for maintaining fleets, will benefit from a further freeze and help prevent the hardship felt from high fuel prices getting any worse _ but a cut in duty was needed to reverse this punitive charge, which is effectively a tax on virtually every British business that uses vehicles. 'Along with the FairFuelUK campaign we wanted to see a radical and much-needed 3p a litre cut in fuel duty as we believe this would do far more good for the economy than simply freezing it. The economic benefits of a fuel duty cut have been clearly demonstrated in the reports produced by the Centre for Economics and Business Research as well as the National Institute of Economic and Social Research. 'We can only hope Mr Osborne is saving the best news for the autumn in the form of a vote-winning duty cut ahead of next year's election.î The AA's president, Edmund King, said the freeze on duty, for a fourth year, was 'very welcome relief for UK driversî. 'The freeze still leaves the squeeze on families and businesses that rely on four wheels to function and prosper,î he added. 'Now that we know, from official figures, that inflation-hit earnings are effectively at 2002 levels and car use is struggling to revive, perhaps a short-term cut in fuel duty would have got the UK properly mobile again.î The Chancellor also announced that a 2 per cent rise in company car tax would be extended to 2017 and 2018, although ultra-low emission vehicles would receive an increase in discounts, with a reduction in the rate of fuel duty for methanol.
