Spring Budget 2023: Fuel duty remains frozen
Chancellor Jeremy Hunt has announced that fuel duty is to remain at its current level for the next 12 months.
Delivering the Spring Budget today, Mr Hunt also stated that the current additional 5p cut in fuel duty, which was introduced last year, will remain in place for the same duration, as inflation and factors such as the war in Ukraine have seen pump prices fluctuate dramatically.
The move sees motorists avoid what would have been a potential rise in duty of 12p per litre had fuel duty risen in line with inflation. The Chancellor estimates this will save the average motorist around £100 per year.
Today, the average price of a litre of unleaded was 147.28p, while a litre of diesel currently costs 166.05p, based on research by the RAC Foundation.
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Energy Price Guarantee to remain in place
With the Government postponing a planned 20% rise in the Energy Price Guarantee (EPG) until July, there's some respite for electric vehicle owners, who have faced reduced fuel cost savings (particularly for those reliant on the public charging network) as energy costs have increased.
In fact, with average electricity unit rates decreasing ever so slightly from 34p/kWh to 33.2p/kWh, this would theoretically save EV drivers around £22 annually (based on the average energy consumption of all EV models we've tested), although individual energy tariffs will vary.
How much does it cost to charge an electric car? Find out if an EV will really save you money over a hybrid model, as well as the models that will cost you least to charge.
Vehicle Excise Duty to increase
Drivers of cars first registered after April 2017 face increased Vehicle Excise Duty (VED - commonly referred to as car tax).
The rises, which come into force on 1 April 2023 and in line with the Retail Price Index measure of inflation, see the standard rate of VED for petrol and diesel vehicles increasing to £180 (up from £165). The standard rate for alternative fuel vehicles, including hybrid cars and electric cars, rises to £170 (up from £155).
To find out all the new VED rates and how much you have to pay, read our Car Tax Explained guide.
More money for Britain’s broken roads
The wet and cold weather over the winter has been a particular problem for the quality of Britain’s roads, so much so that the Chancellor also announced a £200 million funding boost over the next five years - enough to fix around 4 million additional potholes.
The money will be given directly to local councils so it’s likely smaller roads and residential streets will benefit from repair as much as major routes.
This adds to the overall £1.12 billion set to be spent on improving the quality of the UK’s road infrastructure between 2020 and 2025.
Watch: how to claim compensation for pothole damage
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