THE UK chancellor Rishi Sunak has outlined the government’s autumn budget for 2021. As the UK looks ahead to 2022, the big news is around fuel duty remaining at the same level as before.
There was rumoured to be an increase in fuel duty this autumn, although this was scrapped at the last minute – quite possibly in light of the recent fuel shortages the UK is reported to have had. The queues at the pumps helped to push fuel prices to an all-time high, with an average of more than £1.40 being charged at pumps up and down the country. This will mean that for the twelfth year in a row, fuel duty will remain the same.
Some will criticise the move, especially in light of the COP26 summit in Scotland that is about to begin. With so many important eyes on the UK during the conference, some world leaders would be asking the UK to make private car ownership seem less attractive – not more so.
Another pledge was to freeze Vehicle Excise Duty (VED) for 2022, a slightly surprising move by the chancellor. With private car use down on previous years thanks to the global pandemic, and more and more drivers switching to electric or low emissions vehicles that avoid VED, the government coffers are reported to be around £7 million down this year when compared to 2019/2020.
While the move to freeze VED for 2022 will be welcomed by many motorists, it does make you think that a hike in road tax is only just around the corner, as the government looks to recoup some of those losses mentioned above.