Pressure mounts on Government to cut fuel duty in spring budget

More than half of motorists support calls for a cut in fuel duty in next week’s budget, according to the Startline Used Car Tracker.

It’s latest survey shows 58% want a cut in fuel duty and 48% say that road tax on cars should be reduced.

Providing support for buying cars would also be a popular move, according to the study, with 30% saying the Chancellor should introduce incentives for buyers that trade in an existing model for a new one.

Paul Burgess, CEO at Startline Motor Finance, said: “There’s a clear message here that motorists want to see support from the government when it comes to the costs of using and buying cars. The cost of living crisis continues to have a massive impact on many people, and a substantial number of them need a car to work and live their lives.

“Whether this help materialises is, of course, another matter. The Chancellor has done little to indicate that the Budget will do anything other than bring more pain when it comes to household finances, with his priority being to get government spending back on an even keel.

“However, with current assistance over household fuel costs being removed for most people next month, now would certainly be a moment when many motorists would appreciate some form of support when it comes to running their car.”

A planned 5p rise in fuel duty could cause “untold damage” if the Government decides to go ahead with it in the next budget, warns RAC Fuel Watch.

Startline’s research also showed that drivers would like to see more government backing for electric vehicles (EVs), with 30% saying there should be incentives to buy EVs while 29% want lower cost public charging.

Burgess added: “This very much fits in with what we are hearing anecdotally across the market. Many people are interested in buying an EV and doing their bit for the environment but, even though used prices for these cars have fallen in recent months, they remain too high for most people. There is clearly also concern over the cost of charging in a time of high fuel prices.”

Finally, there would also be support for moves in the Budget to reduce the price of public transport with 20% wanting to see lower cost buses and trains.

Burgess said: “Again, people need transport to get to work, take their kids to school and visit family – all essentials – and the prices of using buses and trains are generally rising. It’s an area where they would really like to see the Chancellor take some positive action.”

Pressure is also on the Chancellor of the Exchequer, Jeremy Hunt, to deliver new policies that will boost UK automotive production, following a 0.3% year-on-year decline in production to 68,575 units in January.