Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of fuel duty rates in light of changes in the levels of electric car ownership.

Petrol and diesel prices continue to be volatile given the ongoing conflict in Ukraine and inflation remains high. So, at Spring Budget 2023 the government announced continued support for households and businesses by maintaining the rates of fuel duty at the current levels for an additional 12 months by extending the temporary 5p fuel duty cut and cancelling the planned inflation increase for 2023-24. This represents a saving for drivers this year of overall around £5bn and for the average car driver around £100.

The shift to zero emission vehicles is crucial for decarbonising the transport sector and tackling climate change, while injecting billions of pounds worth of investment into our economy and creating high skilled jobs. As the Government’s Net Zero Strategy set out, as we transition to net zero, the government will need to ensure that the tax system encourages the uptake of electric vehicles, and revenue from motoring taxes will need to keep pace with this change.

The Government keeps all taxes, including fuel duty, under review.