Fleets face 23% hike in fuel duty from next year
The Office for Budget Responsibility (OBR) says that fleets could be hit with a 23% hike in fuel duty from March 2023. Fleets facing record pump prices at the start of the year. Fuel duty was cut by 5ppl in March by the then Chancellor, Rishi Sunak, after being frozen at 57.95ppl since 2011. The reduction in fuel duty, however, was a temporary measure and is due to end next spring, resulting in what the OBR describes will be a “a record cash increase” that will swell Treasury coffers with an additional £5.7 billion in taxes. The transport industry is seeking urgent clarification as to whether the duty rise will be implemented as planned. Given the state of the public finances, this would be an unsurprising move from the Chancellor. However, it would also be a significant new burden on household and business budgets – and at a particularly difficult time. The Government has always made a big deal of cancelling duty rises in the past but facing “colossal pressure” it’s more than likely fuel duty will rise significantly next year.
The Treasury has said a final decision would not be taken until the next budget in spring 2023.