º£½ÇÊÓÆµ

Oops.

Our website is temporarily unavailable in your location.

We are working hard to get it back online.

PRIVACY
Economic Development

Autumn Statement 2013: Chancellor delivers boost to motorists

Fears of another hike in the price of fuel have been allayed in the Autumn Statement

Traffic on the M6 near Birmingham

Hard-pressed motorists have received an early Christmas present with news that next year's planned 2p a litre fuel tax rise will definitely be scrapped.

Chancellor George Osborne confirmed the abandonment in his Autumn Statement today.

Mr Osborne had first announced at this autumn's Conservative Party conference that the 2014 rise would be cancelled - but only if this was financially possible.

RAC Foundation director Professor Stephen Glaister said: "Confirmation of Mr Osborne's conference promise will be welcomed by 36 million º£½ÇÊÓÆµ drivers, not least the record number of workers who now commute by car, some 17 million in total.

"But 60% of the pump price is still taxation and about 7% of all the Chancellor's income comes from motorists. Whichever way you look at it drivers are doing more than their fair share to prop up Government spending."

There was further good news for travellers when Mr Osborne announced that January 2014's rail fare rise for regulated fares - which include season tickets - would be limited to the RPI rate of inflation rather than RPI plus 1%.

With the rise being based on the RPI rate in July 2013, this means that the average rise in January 2014 will be 3.1% rather than the expected 4.1%.

Manuel Cortes, leader of the TSSA rail union, said: "We are pleased that the Chancellor has at last recognised the cost of living crisis being faced by millions of rail passengers.