Fuel tax rise confirmed, but phased in; pothole cash; motorway spending
24 March 2010

Chancellor of the exchequer Alistair Darling has announced a phased introduction of a 3p per litre rise in fuel duty in his Budget speech.

Today’s Budget from Alistair Darling - described by the BBC as 'possibly his last as chancellor' - has brought few surprises for motorists, but little welcome news either.

Hilton Holloway blog - Motorists avoid a Budget kicking - for now

The 3p per litre rise in fuel duty, which could add more than £2 to the cost of refilling a large car, will be phased, so you won’t see much of the price increase at the pump until after the general election, likely to be held on 6 May.

Duty will rise by a penny in April, a penny in October, and once more before at the beginning of 2011.

Darling also confirmed fuel duty will continue to increase again as planned from 2014, according to the fuel price escalator.

Responding to the rise, Professor Stephen Glaister, director of the RAC Foundation, said: "At last there is some relief for cash-strapped motorists who over the past year have seen the pump price of unleaded leap by 26.4p to almost record levels.

"With nine out of ten passenger journeys taking place on the roads, and with 28.5 million cars in Britain, every household in the land has felt some financial pain. Drivers spend about 15% of their disposable income on motoring and when it comes to fuel prices, every penny really does count."

Fuel tax currently provides the government with around £25 billion a year, and Treasury officials claim that the real cost of fuel is less than ten years ago.

Pressure groups had been calling for the planned rise to be scrapped, but Darling needs to raise money as the government is expected to borrow around £167bn this financial year.

Darling also announced that £100million will be made available to local authorities to repair potholes on local roads caused by the recent bad weather. However, the Asphalt Industry Alliance says the shortfall in funding for roads England and Wales was more than £850 million in 2009.

He added that £285 million will be made available for improvements to the motorway network, including the introduction of more hard shoulder running schemes.

The chancellor also confirmed that options for the sale of Dartford River crossing are being finalised. It has been speculated that a new owner could raise toll prices.

Opening his speech, Darling provided an overview of the state of the economy. Included in his round up of successes he mentioned scrappage, which he says has helped car sales rise 30 per cent year on year.

Later on, he also pinpointed Nissan's decision to build the Leaf electric car in the UK and Ford's diesel engine investment in the UK as signs of the nation's strengths.

The creation of a "green bank" was also announced. The chancellor said he wants to set up an investment bank controlling £2bn of equity which will focus on investing in greener, cleaner energy and transport.

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Comments
25

24 March 2010

Hopefully this will be the last time that Labour gets to punish motorists....

Voting time soon........ :)

24 March 2010

Lets face it, it doesn't matter which party is in power, the motorist ALWAYS gets hit hard in the pocket... and it always feels like it was right between the pockets!!!

24 March 2010

WE are going to get done over, again, it pleases the tree huggers.

What they should do is raise a £10, or more, levy every time a foreign registered lorry enters this country and use the money to maintain the roads.

Also on the spot fines for foreign drivers.

Other countries do it. We are too soft.

As said above, voting time soon........

24 March 2010

[quote fhp11]

Hopefully this will be the last time that Labour gets to punish motorists....

Voting time soon........ :)

[/quote]

here here this government wont be happy unless we are all driving around in a g-wizz lets heat up the world and buy a Range Rover

24 March 2010

And to think he actually meant to put that expression on for the camera. Roll on May 6th.

24 March 2010

The government dont want us to by eco hippy mobiles bcos where whould they get all the billions from fuel TAX, road fund license TAX.

They all say we should be in hippy cars but its all a front to keep billody happy and the green party when they really like kicking us then running of with our wallets everytime the fuel light comes on.

I say sod the hippys and the green party and all rally against darling and brown in big V8's

24 March 2010

[quote rhw0104]

The government dont want us to by eco hippy mobiles bcos where whould they get all the billions from fuel TAX, road fund license TAX.

They all say we should be in hippy cars but its all a front to keep billody happy and the green party when they really like kicking us then running of with our wallets everytime the fuel light comes on.

[/quote]

Totally agree with you - everyone seems to think - oh I will get a diesel car - does lots of mpg etc - but then fuel duty goes up 3p because cars are more economical andl what will happen when we all drive cars pushing out less than 100g co2 - they move the goalposts and then say right if you drive cars with below 60g co2 you pay no road tax.

People are living in a dream world if they think this government will give anything away - especially to the motorist!!!!

24 March 2010

I am a company car driver and have a fuel card, up until recently I have never been worried about the price of petrol. But this is getting ridiculous! Firstly, I have to pay tax on personal mileage. Its a small amount but growing rapidly, and this is on top of what my company pays already, which affects there ability to give pay rises etc. I can only but imagine what it is like for someone who pays for fuel. Some figures say the latest price rises will cost £50 a month for the average family. I couldn't afford that. Started growing my own fruit and veg coz that has gone through the roof (partly because of farmers increased fuel costs!).

I am just frustated that we all just moan about it then carry on. I am included in this list, but we all feel powerless to do anything about it! And what will voting do? Bring in another party which does exactly the same! Motorists are too easy a target. I think the only real action we can take is for everyone to stop driving and go on national strike, see how long any government lasts then without there £billions each month. Problem is, it will never be able to happen.

Sad times in what really is a wonderful period to be living in.

24 March 2010

Whoever we have as government things won't change. So Darling puts up the tax on fuel, would the Tories come to power and get rid, no they won't, they will conveniently forget about it as they know it is an excellent cash cow.

What we need is positive action and transparency to see what they spend the money on. Show us the road maintenance, show us the new roads, show us the new trains and reduced fared and we will get over the level of tax we have to pay.

All we need is value for money in the same way we demand it from everything we pay for.

24 March 2010

[quote MattDB]

What we need is positive action and transparency to see what they spend the money on. Show us the road maintenance, show us the new roads, show us the new trains and reduced fared and we will get over the level of tax we have to pay.

All we need is value for money in the same way we demand it from everything we pay for.

[/quote]Exactly right. I don't mind paying a little extra for something if it can be proved we get the benefits in the improvements to public transport, roads etc.

Many have said it before and it will continue to be said no matter which governement gets in power (unless clarkson gets in) where the motorist is concerned things cannot only get better!

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