Thank you for contacting me about fuel prices.
In recognition of the unprecedented circumstances pushing up fuel prices, I welcome the decision announced at the Spring Statement 2022 to cut fuel duty by five pence for a full year across all fuel duty rates.
The decision to freeze fuel duty for the twelve consecutive years prior to this cut had already saved the average driver over £1,900 compared to the pre-2010 escalator.
Vehicles are essential to many people here in the constituency and I have conveyed your comments on fuel duty to my colleagues at the Treasury.
I also welcome that for the first time since 1926, money raised through car tax (Vehicle Excise Duty) is now being spent directly on the roads. Around £28bn is being invested in England's strategic and local roads, an amount equivalent to all VED receipts. I was also very pleased to see the announcement in the Spending Review that £1.7 billion has been made available for local highway authorities in England (outside London) for 2021-2022 to improve the condition of local roads and associated infrastructure.
I am aware of reports regarding future fuel duty rates. No changes or decisions were made regarding fuel duty at this Autumn Statement. The figure in the OBR's commentary stems from their assumption that the temporary 12-month cut to fuel duty will end in March 2023 and that the annual indexation for fuel duty uprating is Retail Price Index, as is normal practice. The existing cut of 5 pence per litre is scheduled to remain in place until March 2023, and any changes to future rates will be made in the Spring Budget in the usual way.
Thank you again for taking the time to contact me.