Planned Fuel Duty rise is frozen
November 29 2011
Drivers were spared further pain at the pumps today when George Osborne announced a freeze in fuel duty during his Autumn Statement.
A 3p rise on tax paid on both unleaded petrol and diesel was due to come into effect on January 1 but the increase has been cancelled. And a 5p tax rise due to be introduced next August has been reduced to 3p.
The Chancellor claimed that combined measures would save the average family £144 per year.
The move may be seen as just a drop in the ocean after years of painful increases that have seen the price of a litre of unleaded petrol jump from 76.9p in 2000 to £1.34 this year.
However, those who drive diesel vehicles will see any benefits evaporate after the forecourt price of the fuel rose by 2p a litre this week.
Before the announcement today, the AA predicted a fuel duty rise would lead to households cutting back on grocery spending rather than cutting back on driving.
A survey for the motoring organisation showed that 18 per cent of its members would cut back on grocery shopping, while nearly a quarter would delay spending on luxury items and home improvement, further damaging the economy.
Edmund King, the AA’s president, said: 'Fuel duty contributes more than 5 per cent to the total UK tax-take, including council tax and income tax.
Source: www.dailymail.co.uk
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Strawberry Admin
December 19, 2011
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December 19, 2011
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