‘Elephant in the room’: Fuel duty and car tax changes expected in Rishi Sunak’s Budget

Budget 2021: Rishi Sunak cancels rise in fuel duty

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As Rishi Sunak prepares to release the details of the Budget, many industry insiders will be watching with bated breath to see the announcements affecting drivers. The review, which will be held on October 27, could clear up a number of things, from electric vehicle infrastructure to changes to fuel duty and company car tax.

November’s COP26 summit will be firmly on the chancellor’s mind as the UK looks to position itself as a global leader in the fight against climate change.

This could signal a broader investment into zero emission vehicles, with a big push for pure electric and plug-in hybrid cars.

In May 2021, the Government’s energy regulator, Ofgem, announced a massive £300million boost to the EV network.

Around £150million of which will be used to develop EV infrastructure, including rapid charging points.

Matthew Walters, head of consultancy services and customer value at LeasePlan UK, spoke of the other changes which massively affect drivers.

He said: “Outside of the electric sphere, it’s possible that we’ll see funding ringfenced for the exploration and development of alternative fuels.

“The Government will want to demonstrate that it’s proactively seeking solutions to some of the UK’s biggest transport challenges, such as how to decarbonise HGVs.

“Then, of course, there’s the issue of how the Government is going to generate revenue.

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“Fuel duty income continues to be the elephant in the room, as the country waits with bated breath to hear how the Government plans to plug the £28billion gap it faces.

“We’re unlikely to see a clear plan this year, but we could see some early indicators.

“One of the key things drivers and businesses should keep a keen ear out for is any changes to the current fuel duty freeze – or indeed an omission of this in the Chancellor’s statement.

“It’s worth noting that without any reference to an extension from the Chancellor the freeze will automatically end.

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