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Fuel duty frozen for fourth year in a row

Date: 19/03/2014 14:58:50
Category: Fuel Efficiency
Author: Laura Varley

Some good news came out of the 2014 Budget for motorists, as fuel duty will be frozen for the fourth year running.

Chancellor George Osborne says the freeze means petrol prices will be 20 per cent lower than they would have been under the plans of the previous government. Fuel duty was set to rise this September, but now it will remain unchanged until spring 2015, reports autoexpress.co.uk.

The government will also continue to enforce a two per cent tax on company cars with high CO2 emissions until 2018. However, drivers who purchase vehicles with particularly low CO2 emissions will continue to be rewarded with discounts. Moreover, fuel duty for ethanol will be reduced too, reports expressandstar.com.

AA president, Edmund King, says overall UK drivers will be relieved at the news, but adds that more could be done to cut driving costs. "The freeze still leaves the squeeze on families and businesses that rely on four wheels to function and prosper," he explains.

"Now that we know, from official figures, that inflation-hit earnings are effectively at 2002 levels and car use is struggling to revive, perhaps a short-term cut in fuel duty would have got the UK properly mobile again."

In response to the bad weather, Mr Osborne also announced a £200 million pothole repair fund. Councils will have to bid for the money though, as it's estimated that £400 million of road repairs currently need to be carried out.

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