Spring 2016 budget including fuel duty freeze
29th March, 2016

The fleet industry has welcomed the continuing freeze in fuel duty after the Chancellor George Osborne cancelled the inflationary rise due next month.

The surprise move means that the main rate of fuel duty will remain at 57.95 pence per litre for 2016-17.

Pump prices are now 18 pence per litre lower than they would have been if the Government had maintained pre-2010 fuel duty escalator plans.

Osborne said: “In the last twelve months, petrol prices have plummeted. That is why we penciled in an inflation rise. But I know that fuel costs still make up a significant part of household budgets and weigh heavily on small firms.

“Families paid the cost when oil prices rocketed; they shouldn’t be penalised when oil prices fall. So I can announce that fuel duty will be frozen for the sixth year in a row. That’s a saving of £75 a year to the average driver; £270 a year to a small business with a van. It’s the tax boost that keeps Britain on the move.”

Highlights of the other key announcements made during The Chancellors Spring Budget speech can be found in our report which is available for download from our Document Library.