Budget 2010 – Fuel Duty
The Chancellor has announced that the expected increase of 2.76p per litre in fuel duty that was due to be implemented on 1 April 2010 is now to be phased in over the course of the next tax year as follows:
- 1 April 2010 increase of 1p per litre
- 1 October 2010 increase of 1p per litre
- 1 January 2011 increase of 0.76p per litre
Going forward, the Chancellor has announced that fuel duty will rise annually by one pence per litre above indexation on 1 April 2011, 2012, 2013 and 2014. The future changes will all take effect on 1 April of the respective years.
Whilst the phasing in of the fuel duties will help businesses and individuals it should be noted that the Chancellor has kept the increase as planned and only delayed its implementation.