Chancellor cancels 2p-a-litre fuel duty rise

  • September 2014 fuel duty rise scrapped
  • No further increases before May 2015
  • Full statement confirms car tax disc abolition

The 2p-a-litre fuel duty increase that was planned for September 2014 has been cancelled.

As well as scrapping next year’s rise, Chancellor George Osborne ruled out any further increases before May 2015.

Delivering his Autumn Statement in the House of Commons, Mr Osborne said, ‘Next year’s fuel duty rise will be cancelled. Instead of petrol taxes going up by 2 pence a litre, they will stay frozen’.

The Treasury claims that compared with the previous government’s plans, petrol will be 20p per litre cheaper; or based on a 55-litre fuel tank, around £11 less for every fill-up.

The Chancellor did not mention Vehicle Excise Duty in his speech, but in the full Autumn Statement document, the Treasury confirmed that the car tax disc will be abolished.

Legislation will be introduced next year, which will mean that from 1 October 2014, motorists will no longer be issued with a paper disc to display inside their car. Instead, the system will be completely electronic.

Motorists will also be able to pay by direct debit, choosing monthly, biannual or annual payment options. The biannual and monthly options will attract a 5% surcharge.

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