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Chancellor of the exchequer Jeremy Hunt today [6 March 2024] announced the long-awaited Spring Budget. Amongst the policies announced was the decision to freeze fuel duty at its current rate.
In his opening remarks to the House of Commons, Hunt said: “In recent times the UK and the UK economy has dealt with a financial crisis, a pandemic and an energy shock caused by war in Europe”, which he described as “the most challenging economic headwinds in modern history”.
In the 2023 Spring Budget, it was announced that the government would spend ‘over £5 billion’ maintaining fuel duty at the same level, including keeping the 5p cut in place. Today the chancellor confirmed that fuel duty is set to be maintained at current levels for the year ahead.
“If I did nothing,” Hunt said, “fuel duty would increase by 13% this month, so instead […] I have decided to maintain the 5p cut and freeze fuel duty for another 12 months.”
With fuel costs being a key concern for fleet operators, the freeze in fuel duty will come as a relief for many in the logistics and supply chain industry.
David Bushnell, director of consultancy and strategy at fleet management consultancy Fleet Operations, commented: “In the midst of a pivotal election year, the unveiling of the UK chancellor’s Spring Budget has inevitably garnered widespread attention, not least from the fleet transport sector.
“With political tensions high and economic forecasts under keen scrutiny, it will be regarded by many as an indicator of the government’s policy priorities and financial strategies.
“The decision to cancel the planned increase in fuel duty, effectively freezing it at its current rate, must be welcomed. The move – in the wake of the biggest monthly rise in fuel prices in five months in February – offers a financial reprieve for the fleet sector amidst considerable economic pressures and the burgeoning challenges of operating fleets in the current economic climate. Read more
Source: LOGISTICS MANAGER
