In recognition of the unprecedented circumstances pushing up fuel prices, I welcome the decision announced at the Spring Statement to cut fuel duty by 5 pence for a full year across all fuel duty rates.
The decision to freeze fuel duty for the twelve consecutive years prior to this cut had already saved the average driver over £1,900 compared to the pre-2010 escalator.
I also welcome that for the first time since 1926, money raised through car tax (Vehicle Excise Duty) is now being spent directly on the roads. Around £28bn is being invested in England's strategic and local roads, an amount equivalent to all VED receipts. I was also very pleased to see the announcement in the Spending Review that £1.7 billion has been made available for local highway authorities in England (outside London) for 2021-2022 to improve the condition of local roads and associated infrastructure.
I appreciate concerns relating to the impact of the Russian invasion of Ukraine on fuel prices. I know ministerial colleagues are monitoring this impact closely.
