Extra cash for pothole repairs promised by the Chancellor
FUEL duty is to remain frozen for the 13th consecutive year, while pothole repairs will receive additional investment and vehicle excise duty (VED) will increase, the Chancellor of the Exchequer has announced.
Jeremy Hunt’s 2023 Spring Statement didn’t contain many measures aimed directly at motorists, but the previously forecasted 23-per-cent hike in fuel duty – which would have raised the pump price of petrol and diesel by 12p per litre – didn’t come to fruition.
Instead, Hunt announced that fuel duty would remain at the same level it has since 2011, with the cut of 5p per litre implemented in early 2022 also staying for another 12 months.
The Chancellor said he had listened to representations from politicians and campaigners, and came to the decision that high inflation means now is not the time to raise fuel prices.
Howard Cox, founder of FairFuelUK, welcomed the news. “The longest-ever consumer tax levy freeze thankfully continues,” he said. “It would be churlish not to warmly thank Mr Hunt for today’s news, even though drivers wanted a cut in this regressive tax.”
Hunt’s announcement of an additional £200million investment in pothole repairs was also welcomed, although motoring groups highlighted that this isn’t enough money to bring about significant change.
“While welcome, another £200million is unlikely to make a big difference to the overall quality of our dilapidated local roads,” said Nicholas Lyes, head of roads policy at the RAC.
The AA’s head of roads policy, Jack Cousens, added: “Additional cash is welcome, but we are concerned that it won’t become available until next year.
“Years of underinvestment in our road network, coupled with a cold and wet winter, are already unveiling the craters.
“More money needs to be spent now, as well as significant long-term investment to improve our local roads.”
There were no major announcements about VED, but the usual inflationary increases were confirmed. The regular rate of VED for petrol and diesel cars registered from 1 April 2017 onwards rises to £180, while the expensive-car supplement is now £390 per year.
“While welcome, another £200million is unlikely to make a big difference to the quality of our roads”
NICHOLAS LYES RAC Head of roads policy