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Spring Statement 2022: Fuel duty to be cut by 5p a litre from tonight
23.03.2022 - 16:25 / dailyrecord.co.uk
Chancellor Rishi Sunak has bowed to pressure and reduced fuel duty by 5p a litre, effective from 6pm tonight.
In a Spring Statement to the Commons dominated by the cost of living crisis and rising inflation, the Tory chancellor said the cut in duty would last for a full year.
He told MPs that the cut would mean a saving of £5billion for drivers.
In a tight financial situation, Sunak said the war in Ukraine wold mean that the growth forecasts would be affected.
The Office for Budget Responsibility downgraded the growth forecast for this year to 3.8 per cent, Sunak has told MPs
Sunak also said VAT being cut to zero on energy saving devices, like solar panels.
This could cut the cost of having a solar panel installed by £1,000.
He said: "Today I can announce that for only the second time in 20 years, fuel duty will be cut.
"Not by one, not even by two, but by 5p per litre. The biggest cut to all fuel duty rates - ever.
"While some have called for the cut to last until August, I have decided it will be in place until March next year - a full 12 months.
"Together with the freeze, it's a tax cut this year for hard-working families and businesses worth over £5 billion, and it will take effect from 6pm tonight."
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