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Manchester Evening News
Manchester Evening News
National
Ellie Kemp

Fuel duty and price of pints in pubs frozen

Beer in pubs and fuel duty will be frozen, the Chancellor of the Exchequer announced during his spring statement on Wednesday (March 15).

Jeremy Hunt said he would “significantly increase the generosity of draught relief”, adding this could not be done when the UK was in the EU. It means from August, the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets.

Meanwhile, fuel duty will not be uprated with inflation and will instead be frozen. The current 5p cut will also be maintained. Addressing the House of Commons, Hunt said: “Today, I will do something that was not possible when we were in the EU and significantly increase the generosity of Draught Relief, so that from 1 August the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.

READ MORE: Spring Budget LIVE updates as Jeremy Hunt unveils plans to tackle cost of living crisis and boost growth

He added: "British ale may be warm, but the duty on a pint is frozen.” Mr Hunt said the change will apply to “every pub in Northern Ireland” due to the Windsor Framework.

On fuel duty, Mr Hunt said: “Because inflation remains high, I have decided now is not the right time to uprate fuel duty with inflation or increase the duty. So here’s what I am going to do: for a further 12 months I’m going to maintain the 5p cut and I’m going to freeze fuel duty too. That saves the average driver £100 next year and around £200 since the 5p cut was introduced.”

Fuel duty will be frozen for a further 12 months (Sean Gallup/Getty Images)

The continued halt on fuel duty means drivers have been spared a potential price rise of 12 pence per litre, after the tax had previously been predicted to rise by 23%. Graham Conway, managing director at Select Car Leasing, welcomed the continued freeze on fuel duty, saying any large rise could have tipped many motorists over the ‘precipice’.

He said: “We wholly welcome the Chancellor’s announcement on fuel duty in today’s Budget, with the duty now frozen at 57.95p until March 2024. The poorest families, as well as businesses operating a fleet of vehicles, would be hit the hardest by any rise in the price of fuel.

“And for many people who are really feeling the effects of the cost of living crisis, such a price hike could have tipped them over the precipice in terms of their own budget. Fuel duty is a tax levied on petrol, diesel and other fuels by the Government. And since 2011, fuel duty has actually been frozen at 57.95p per litre.

“In March last year, then-Chancellor Rishi Sunak slashed fuel duty by an additional 5p a litre, taking it down to 52.95p per litre in a bid to ease the pressure on motorists amid sky-high petrol and diesel prices. Now, the Chancellor’s decision to extend the cut to fuel duty will come as extremely welcome news to motorists and businesses across the UK that rely on traditionally-fuelled vehicles for their essential travel."

Graham also noted that the continued freeze actually goes against what some experts were forecasting, adding: "In November last year, the Office for Budget Responsibility (OBR) predicted a 23% rise in fuel duty, which would have increased the price of petrol and diesel by around 12p per litre. The extension to the cut means financial relief for millions of drivers. Because while petrol and diesel prices have dropped from the all-time high prices of the summer of 2022, they’re still a huge burden for many families and companies.

“It’s worth noting that while the continued fuel duty freeze can provide some short-term relief for drivers, it may only be a brief reprieve. The price of fuel is influenced by a variety of factors, including global oil prices and geopolitical events, which are outside the control of the UK government. Whilst fuel prices have dropped around 45 pence since July 2022, drivers are still paying much more than they were in 2021.”

During the fiscal statement, Mr Hunt also said the UK would not yet be entering 'a technical recession.' The Chancellor said: “We remain vigilant, and will not hesitate to take whatever steps are necessary for economic stability.

"Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year. They forecast we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working. But that’s not all we’ve done.”

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