The main headline in terms of motoring is that, contrary to many forecasts, duty on fuel will be frozen again.
This is clearly good news for anyone who drives a vehicle of any kind, as are the new road infrastructure projects that have been announced and the reductions in tolls for the Severn Crossing. “The bigger picture is that the economy isn’t doing quite as well as the Chancellor previously forecast and there is going to be some budgetary belt tightening. Our view is that while risk factors have undoubtedly increased, the economic outlook remains relatively optimistic if susceptible to potential shocks such as the outcome of the EU referendum and wider global economic trends.
However, there is nothing here that will cause us to change our view that 2016 will be a strong year for the motor industry. “It is also worth mentioning that the backdated tax cuts for the UK’s oil and gas industries could be good news for dealers in Scotland, some of whom have been coming under pressure on a localised basis.”
Quentin Willson of FairFuelUK said: ‘Freezing duty for a fifth year is hugely significant. The Treasury now has five years of evidence to prove that keeping fuel duty low has helped improve GDP, stimulate economic activity and actually improve tax receipts. The Chancellor knows that low transport costs have had an enormous economic benefit to the UK over the last five years.’
Howard Cox, founder of FairFuelUK said: ‘our intense lobbying and campaigning hit home to the Treasury. By not hiking fuel duty Osborne has ensured that £5bn is not taken from consumer spending in this Parliament. His decision has ensured continued growth in GDP, low inflation and new jobs will not be compromised, with added benefits of more VAT, income and corporation tax revenue too. Hard working Brits will be relieved, but he should have been braver and cut duty for even more benefits to the economy. But that would be churlish to complain today, FairFuelUK is hugely grateful to maybe the next Prime Minister and his sensible actions today.’