► Fuel duty freeze continues
► Money for 4 million potholes to be fixed
► No change to road tax for 2023
Chancellor Jeremy Hunt has extended the 5p-per-litre fuel duty cut for another 12 months and promised enough funding to fix 4 million potholes on Britain’s crumbling road network.
In March 2022, the Chancellor temporarily cut fuel duty by 5p to relieve some of the pain amid skyrocketing petrol and diesel costs. Now he has decided to keep it going for at least another 12 months, which should save the average motorist £100 over a year, according to the Treasury.
Petrol prices have fallen significantly from the peak of more than £1.91 per litre in July 2022 to around £1.48 in March 2023. However, it is still more expensive than pre-pandemic, where it was around £1.25.
Motorists tax bills: fuel duty and other car taxes
Hunt said: ‘Because inflation remains high, I have decided now is not the right time to update fuel duty with inflation or increase the duty.
‘For a further 12 months I’m going to maintain the 5p cut and I’m going to freeze fuel duty too. That saves the average driver £100 next year and around £200 since the 5p cut was introduced.’
Head of personal finance for investment firm Hargreaves Lansdown, Sarah Coles, said: ‘Duties are one area where the government can raise or cut prices at a stroke, so it’s heartening to see they have stepped in on behalf of drivers. Frankly, after such a long freeze of fuel duty it would have been a surprise if they raised prices right now.’
The spring Budget also announced a £200 million fund for local authorities to repair potholes and improve roads. The increase is expected to fix the equivalent of up to 4 million additional potholes across the country.
Road tax, which was expected to increase in line with inflation, has not changed.