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Fuel duty will continue to be frozen at the current rate for the next 12 months, Chancellor of the Exchequer Jeremy Hunt has announced in today's Budget speech.
The measure involves the maintaining of the freeze on fuel duty which has been in place since 2011, and also the continuation of the 5p cut which was introduced in March 2022.
Reacting to the fuel duty freeze, RAC head of policy Simon Williams said: "With a general election looming, it would have been a huge surprise for the Chancellor to tamper with the political hot potato that is fuel duty in today's Budget. It appears the decision of if or when duty will be put back up again has been quietly passed to the next government.
"But, while it's good news that fuel duty has been kept low, it's unlikely drivers will be breathing a collective sigh of relief as we don't believe they've fully benefited from the cut that was introduced just two years ago due to retailers upping margins to cover their 'increased costs'. This has meant fuel prices have been higher than they would otherwise have been."
Williams added that it was disappointing to see a lack of new incentives for EV adoption, including potentially equalising VAT between home and public charging.
He said: "There is a huge strength of feeling about this issue, with charging networks having committed to passing the savings on in full to drivers - so it's enormously frustrating that the Chancellor has chosen to look the other way on this important issue.
"It's also the case that the high upfront cost of electric vehicles risks continuing to put off drivers from making the switch. The UK is now an outlier in Europe in offering no up-front financial incentives.
"The absence of any announcements today to support the transition to EVs is enormously disappointing and risks hampering the speed at which everyone can enjoy the benefits of cleaner driving."
Also expressing disappointment at a lack of EV support, Vauxhall managing director James Taylor said: "Today's Budget has not delivered the acceleration needed to stop the UK's transition to electric vehicles from stalling.
"If we are to meet the rightly ambitious targets laid out in the government's zero emission vehicle mandate (80% of all cars sold to be electric by 2030) then there needs to be incentives for private car buyers to make the switch to electric as there are in the majority of European nations.
"Whilst there are strong incentives for company car drivers to make the switch to electric - including for those choosing luxury vehicles - the private buyer who wants a more attainable small or family car receives nothing.
"We would call on the Chancellor to urgently set up purchase incentives to stimulate the electric vehicle market and review the unfair taxation on public charging so that the UK isn't left behind in the race to more sustainable motoring."
Giving his Budget reaction, Fleet Operations director of consultancy and strategy David Bushnell said: "The decision to cancel the planned increase in fuel duty, effectively freezing it at its current rate, must be welcomed. The move - in the wake of the biggest monthly rise in fuel prices in five months in February - offers a financial reprieve for the fleet sector amidst considerable economic pressures and the burgeoning challenges of operating fleets in the current economic climate.
"However, whilst there will be no additional fuel cost burden for operators of petrol and diesel vehicle fleets in the short term, it is important to highlight that while this measure aids financial planning, it does little to advance the broader objective of transitioning to more sustainable modes of transport.
"The cost of running EV fleets, particularly those that rely on public charging stations, remains a significant barrier to adoption. A reduction in VAT on public charging could have served as a strong incentive for fleet operators to accelerate their shift to electrification, aligning with the UK's ambitious environmental targets.
"The government's commitment to environmental sustainability and reducing carbon emissions is well-noted, but the actions to support these commitments, especially in the context of fleet transport, require more work."
Cox Automotive insight director Philip Nothard said: "The budget will come as a disappointment to both current and would-be EV drivers and automotive generally. We had hoped that the government would address the VAT discrepancy between domestic and public charging. Steps taken in that regard would have been both affordable and logical.
"Having said that, measures that put money back in the pocket of the average consumer, as the fuel duty freeze and national insurance cut do, clearly help our sector. This was a budget designed to win votes in an election year, but one with zero incentives to further push zero-emission motoring."
Association of Fleet Professionals chair Paul Hollick said: "There are some mixed feelings here. In a lot of ways, one of the wins this government can claim over the last 14 years is its commitment to electrification, and the impact that its policies have had on the fleet sector in terms of moving to zero carbon emissions have been marked and dramatic.
"However, the truth is that more assistance in this area is now required - especially when it comes to van electrification where there are fundamental issues to overcome as well the need for a further increased rollout of charging infrastructure - and there was no sign of that help arriving at any time soon.
"While minor moves such as the continued reduction of fuel duty is welcome, we very much hope to see more from whoever is in power following the next General Election."
BVRLA chief executive Gerry Keaney - although welcoming an announcement of full expensing applicable to van fleets - said: "At a critical time for the transition to zero-emission vehicles, no news is bad news. Today we heard nothing on charging, VED, BIK, VAT on public charging, grants for electric vans, or a consumer education campaign. The Chancellor is leaving our sector in limbo.
"The government needs to be braver in unlocking the billions of pounds in zero emission investments required across the whole road transport sector, from fleets, small businesses and private motorists."
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