Temporary relief from fuel duty rise

The Chancellor’s decision to defer a two pence per litre increase in fuel duty until October will only provide fleet managers with temporary relief from spiralling costs, according to the AA.

According to AA President Edmund King, the decision should quell any panic at the pumps as the proposed tax increase would have taken fuel prices to new record levels.

King explained that two pence might not sound like much but, when it is added to the 20 pence per litre increase in pump prices in the last year, it could have been the last straw for many motorists.

On the announcement that road pricing is back on the agenda, Mr King went on to say that motorists are being hit with road pricing already due to the record price of fuel.

He said that perhaps this road pricing funding would be better spent immediately by getting rid of bottlenecks on motorways and main roads.

Mr King also gave a lukewarm welcome to the review of vehicle excise duty (VED), saying that graduated tax according to emissions sends out the right message but the AA needs to examine the detail to ensure that the system is fair.

Manufacturers and motorists need advance warning of changes and people must remember that some larger vehicles are essential for some, he added.