Harriett Baldwin highlights the Treasury Committee’s recent report titled “Fuel Duty: Fiscal forecast fiction”, which questions the 12p fuel duty raise that the Office for Budget Responsibility uses in its forecasts and asks if the Treasury will respond to that report before the Budget.
The Treasury Committee recently published a report titled “Fuel Duty: Fiscal forecast fiction”, because we do not think the Chancellor will really be able to raise fuel duty by 12p, as is currently baked into the Office for Budget Responsibility numbers. Will the Chancellor be able to respond to our report before the Budget?
It is worth stressing that, when we reduced fuel duty at the last spring Budget by 5p on both petrol and diesel, it was only the second time in the past 20 years that both rates had been cut. Future changes will obviously be determined at the appropriate fiscal event.