3rd October 2018
CENTRAL DEVON MP Mel Stride has cited the current high price of oil and the need to support small businesses and low-income families as three of the main reasons behind the Government’s decision to freeze fuel duty for the ninth year in a row. HM Treasury, in which Mr Stride serves as a minister, had previously considered whether the time was right to end the freeze to raise an additional £800million through a 2p a litre increase. But the announcement from Prime Minister Theresa May today (03/10/18) confirmed the Chancellor will not make the move in this year’s budget.
Explaining the decision Mr Stride said:
“The Treasury thought long and hard about this decision as the Government is looking at how additional revenue can be raised to invest in public services, particularly health and social care. But several factors led to us concluding that ending the fuel duty freeze would not have been the right way to go. Petrol and diesel prices have gone up in the past year due to the high price of oil and a duty increase would have exacerbated that. For many families and small businesses, particularly in rural counties like Devon, a car is a necessity and freezing duty for a ninth year in a row will help families on the lowest incomes and support small businesses, particularly self-employed tradesmen who use their vans daily for work.”
The fuel duty escalator was introduced in the 1990s to increase duty ahead of inflation to curb pollution from road transport. Taking into account this freeze, an average family will be saving nearly £1,000 a year at the pump compared to what they would have spent had the Government not frozen the duty for the past nine years.
Notes to Editors
For more information please contact Chris Yeo via email@example.com.
For more from Mel visit www.melstridemp.com or follow him on twitter @MelJStride