Chancellor announces duty differential for cleaner road fuels

LowCVP among groups to welcome Chancellor’s decision, which includes £5 million investment in EV programme

Carbon sustainability groups have welcomed the government’s decision to maintain the differential between the main rate of fuel duty and the rate for clean road fuel gases.

The announcement, which was published in the Chancellor’s Autumn Statement, will provide businesses with more certainty when considering investments in alternatively fuelled vehicles such as ELVs.

Chancellor George Osbourne issued the duty differential in his Autumn Statement

The current main rate of fuel duty and road fuel differential will be maintained at current levels until March 2024, while the differential between the main rate and liquefied petroleum gas (LPG) will continue to decline 1% per litre each year until that time.

The statement also saw the government commit to reviewing the impact of these incentives on vehicle uptake and the public finances at Budget 2018.

Andy Eastlake, managing director of public-private partnership group LowCVP, said: “The LowCVP and its partners have been calling for longer term certainty in future fuel duty rates for cleaner fuels to encourage adoption and investment.

“This announcement will provide over ten years of stability for vehicle operators considering investing in low carbon vehicles, particularly for commercial fleets.”

Meanwhile the national infrastructure plan, published in conjunction with the statement, announced the government’s intention to invest £5 million during 2014/15 in an electric vehicle readiness programme.

The programme aims to promote the adoption of low emission vehicles for the public sector and encourage wider acceptance of the technology.