Chancellor Rachel Reeves is expected to announce a further fuel duty change in her November fiscal statement, according to the AA. The motoring organization has tipped the Labour Party Chancellor to make a further announcement on the fuel duty charge in the Autumn Budget.
AA's Prediction
Jack Cousens, head of roads policy at The AA, said: "Drivers will be pleased that the planned fuel duty increase has been delayed until the end of the year. Drivers will find out in the Autumn how and when the 5p will be added back onto the pumps." The prediction comes after Ms Reeves announced a 5p fuel duty cut until the end of the calendar year.
Cycling UK's Response
Duncan Dollimore, Associate Director and Head of Campaigns at Cycling UK, said: "While reinstating the fuel duty cut offers some people short-term relief, it only kicks the problem further down the road. Having more transport alternatives that don't solely rely on the petrol pump is one of the best ways we can protect people's freedom when prices rise."
He added: "Freezes to fuel duty have already cost the public finances over £130 billion, with projected losses set to rise to over £200 billion by 2028. That's why investing in greater transport choice makes sense. Increasing support to give more people access to a bike, e-bike or e-cargo bike would save people money and keep communities connected, without leaving the public finances exposed every time there's a fuel price spike."
IMI's Welcome
Nick Connor, CEO of the IMI, welcomed the Government's decision to scrap the planned fuel duty increase. "With pump prices already at their highest level in years due to the conflict in Iran, any additional burden on motorists and the businesses that depend on the road network would have been extremely damaging," he said.
"The motor industry is on the front line of this cost pressure – our members see every day the financial strain that rising fuel costs place on their own business operations as well as drivers and fleets. Freezing duty is the right call, but it is only a partial solution. We would urge the Government to keep the situation under close review and stand ready to do more if pump prices continue to climb."
