Stuart Anderson MP calls on the new government to keep fuel duty frozen
Stuart Anderson MP has called on the new government to continue a decade-long freeze on fuel duty that has saved drivers an average of £1,900. It follows concerns that the new government could scrap the freeze that has been in place since 2011/12 when the new government delivers its first autumn budget on 30 October 2024.
Increases in retail fuel margins cost drivers over £1.6 billion last year, according to the Competition and Markets Authority (CMA). With fuel duty soaking up a third of the price at the pump, Stuart has said that keeping the freeze would help commuters in rural areas like South Shropshire. The measure is expected to have helped 36 million people and has been especially beneficial for rural areas.
In Shropshire, over two thirds of residents rely on a car or van to get to work, according to the 2011 Census. At the same time, average weekly household expenditure on transport costs in rural areas is £94, compared with £70 in urban areas. In recognition of the fact that fuel is a major cost for households, the last government extended the fuel duty cut on petrol and diesel of 5 pence per litre for a further 12 months in the Spring Budget 2023. It also cancelled the planned inflation-linked increase for 2023-24.
At the time, the OBR estimated that this policy would reduce CPI inflation by 0.2%. It represents a saving for drivers worth around £13 billion over three years from being introduced. This has saved the average driver around £15 in fuel duty per tank of fuel, compared to what would have been paid under the pre-2010 escalator.
In addition, Stuart has called on government to continue the ‘Get Around’ for £2 Bus Fare Cap, introduced by the last government to help people facing cost of living pressures save on everyday travel costs. With local bus journeys accounting for around half of all public transport journeys, they remain central to everyday transport choices. There are over 140 bus operators and 5,000 routes in the Scheme. In rural areas, bus fares dropped by almost 11% between September 2022 and September 2023.
Stuart Anderson MP said:
“Transport is a major cost for individuals and families in South Shropshire. I understand the extra challenges that commuters face in getting to school, work, and other appointments in rural constituencies like ours. With two-thirds of commuters relying on cars, it is vital that consumers get a fair deal on fuel prices. So I have called on the government to keep the decade-long freeze on fuel duty, which has saved car drivers an average of £1,900 since 2010.
Stuart added:
"I have also urged the government to keep the £2 Bus Fare Cap, which has seen bus fares in rural areas drop by almost 11% - helping passengers to save on their travel costs and encouraging more people to use the bus. Investing in rural areas will unlock their productive potential, helping the rural economy to grow. So, I hope these policies will be mentioned in the Budget when it is delivered in October.”
