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Increased fuel duty has been cancelled in the budget
08 March 2021
Increased fuel duty, due to take effect next month (April), has been cancelled by Chancellor Rishi Sunak in the Budget 2021.
The Treasury says this could be the last time fleets can expect a freeze in fuel duty and that future rates will be decided taking into consideration the UK’s commitment to reach net-zero emissions by 2050.
The one-year freeze in fuel duty from 2021-22 will cost the Treasury £795m, rising to £885m the year after (2022-23), £910m in 2023-24, £925m in 2024-25 and £945m in 2025-26.
There was no mention of future benefit-in-kind (BIK) tax rates or the potential for road pricing to replace fuel duty and vehicle excise duty (VED).
However, it was made clear in the budget that there will be an increase in VED rates for cars, vans and motorcycles in line with retail price index (RPI) from April 1 2021.
Chair of the Association of Fleet Professionals (AFP) Paul Hollick said, “This was a Budget that, from a fleet industry point of view, was much more important for its broad macroeconomic sweep than for any detail issues.
"Yes, we’d like to see indications of more work happening at the Treasury in areas such as the future of benefit-in-kind taxation for company cars and vans, as well as wider transport issues such as road charging, but the crucial thing for the moment is that businesses continue to be financially supported through the historically tough economic conditions that we are all facing.
"On that front, the Chancellor appears to have delivered although only someone who hadn’t been paying attention to the coronavirus crisis so far would bet against further, targeted help being needed in the future.
"One point of note are the plans for freeports around the UK which, if successful in terms of generating manufacturing, could become hubs of quite intensive fleet activity.”
You can find out more about the measures announced by Chancellor Rishi Sunak in the budget here.
We at Marshall Leasing are always interested in the latest news from the fleet sector and trust that you find this information useful. If you would like to find out more about how our team of experts can assist with your fleet requirements, please do not hesitate to get in touch with us by emailing info@marshall-leasing.co.uk or calling 01480 414541.
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