Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of (a) reducing VAT on road fuels and (b) retaining the freeze on road fuels excise duty in the context of recent price rises.
VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to the vast majority of goods and services, including fuel.
In recognition of high prices at the pump and the fact that fuel represents a major cost for households and businesses, the Chancellor announced at the Autumn Budget 2021 that fuel duty would remain frozen in 2022-23.
This is the twelfth consecutive year of the fuel duty freeze, providing savings for consumers worth almost £8 billion over the next five years.
All taxes, including fuel duty and VAT, remain under review.