Tony Hulatt, managing director CLM, welcomes the end to the fuel escalator announced by in the Budget.
Chancellor George Osborne announced a 1p per litre cut in fuel duty in response to a recent surge in global oil prices, effective from 6.00pm on Budget day, saying that ‘Budget has put fuel in to the British economy’.
He also said he would cancel the fuel duty escalator that would have pushed fuel costs higher. An inflation-linked rise in the fuel duty planned for next week, which could have added 4p to the price of a litre of fuel, was delayed until next year.
“It was excellent and unexpected news regarding extra cuts to fuel duty, while the additional cut in corporation tax is also good news from a corporate perspective,” said Tony Hulatt.
Mr Hulatt was also pleased by the increase for business mileage reimbursement from 40p to 45p.
“This was an interesting move and while it remains uncompetitive because of the fuel increases we have witnessed, it gives more weight to the return to company cars. However, I do think that this is at odds with previous statements about reducing business mileage in private cars,” he said.