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Treasury faces conundrum over replacing lost fuel duty revenues

There was no mention of motoring tax reform in the Spending Review, but it is an issue increasingly being discussed behind the scenes within Government, says Arman Farahmand-Razavi

02 November 2021
 

In this week’s Autumn Financial Statement, the Chancellor froze Fuel Duty for 2022-23 for the twelfth consecutive year. There were no other changes to motoring taxes. Meanwhile, at a Select Committee last week, all the speakers from the transport industry agreed that some kind of road pricing in the near future is inevitable, while the Treasury official acknowledged that the transition to net zero will erode Fuel Duty and Vehicle Excise Duty (VED) receipts on the basis of current...

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