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Andrew Selous

South West Bedfordshire

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Fuel Duty and Prices

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Please be assured that I expect the Chancellor to announce further action regarding this on Wednesday. I also welcome the fact that the decision to freeze fuel duty for twelve consecutive years has saved the average driver over £1,900 compared to the pre-2010 escalator.

Cars are essential to many people here in the constituency and I have conveyed the comments raised and the research of Cebr and FairFuelUK on fuel duty to my colleagues at the Treasury.

I welcome that for the first time since 1926, money raised through car tax (Vehicle Excise Duty) is now being spent directly on the roads. Around £28bn is being invested in England's strategic and local roads, an amount equivalent to all VED receipts. I was also very pleased to see the announcement in the Spending Review that £1.7 billion has been made available for local highway authorities in England (outside London) for 2021-2022 to improve the condition of local roads and associated infrastructure.

I appreciate concerns relating to the impact of the Russian invasion of Ukraine on fuel prices. I know ministerial colleagues are monitoring this impact closely.

Furthermore, a new £2.5 billion Pothole Fund is running between 2020/21 and 2024/25 to help local authorities fill-in around 50 million potholes across the country and stop potholes forming in the first place.

My colleagues at the Treasury have also emphasised that any future fuel duty rates will be considered in the context of the UK’s commitment to reach net zero emissions by 2050.

It is worth noting that the fuel duty freeze comes at significant costs to the Exchequer, and that £67bn has been spent on freezing fuel duty and another £46bn will be spent by the end of 2025.

While I am aware of the arguments in favour of introducing an independent pump pricing watchdog, I do not believe such a move is necessary. I firmly believe that the most effective way to keep fuel prices down is through an open and competitive market. In 2013, the Office for Fair Trading investigated competition in the UK fuel sector and concluded that it was operating well. It should be highlighted that the Government works with numerous stakeholders to ensure that the fuel industry is competitive, so consumers benefit from low prices.

Moreover, I fully support the Government’s legally binding target for the UK to reach net zero  greenhouse gas emissions by 2050. While it is important to encourage active travel and greater use of public transport to help drive down emissions and improve air quality, the reality is that for many commuters and businesses it is simply not possible to forgo using a vehicle in all situations. We have to recognise that the transition to electric and alternatively-fuelled vehicles will play a crucial role in helping us reach net zero carbon emissions, so it is important that our local, major and strategic roads are fit for purpose, both now and in the future.

I welcome the Government's decision to invest £350 million in green fuels for heavy industry. This includes a particular focus on aviation delivered through the establishment of Jet Zero Council to steer the UK's efforts to make net-zero long-haul flying a reality.

I am also aware that the Government currently uses the tax system to encourage the uptake of vehicles with low carbon dioxide emissions to help meet our legally binding climate change targets. This is why zero emission cars and electric vans are liable to pay no VED, and why users of zero and ultra-low emission cars have favourable company car tax rates in comparison to conventionally fuelled vehicles.

I welcome the steps being taken towards achieving net zero carbon emissions by 2050. Widespread uptake of electric vehicles and the phasing out of new petrol and diesel cars and vans will make a vital contribution to this.

As this transition gathers pace, we will need to ensure that revenue from motoring taxes keeps pace with this change to ensure that investment in road infrastructure can meet future demands and challenges.

Regarding cycle lanes, I would also be happy to forward the concerns raised to my ministerial colleagues, to bear these points in mind during future debates on the issue. It is worth noting that the Department of Transport is in the process of analysing public feedback as part of a review into The Highway Code.

I also know the Chancellor is committed to conducting a review on reform of the aviation tax landscape and I look forward to seeing this review come to fruition in due course.

Finally, the potential impacts of Direct Air Capture and the possibilities of CO2 neutral fuels are exciting, and I know my ministerial colleagues are committed to ensuring our future tax regime encourages innovation and contributes to Britain’s net zero ambitions.

I firmly believe that the most effective way to keep fuel prices down is through an open and competitive market. 

Campaign Responses

  • Access to Waterways
  • Adult Dependant Relative Visa
  • Adult Social Care
  • Afghanistan and Pakistan
  • Afghanistan: Nowzad
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  • Age UK's Winter Warmth Campaign
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  • Fuel Duty and Prices
  • Fuel Shortages
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  • HIV and AIDS
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  • Nazanin Zaghari-Ratcliffe
  • Neonicotinoids
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  • Nigeria: Mubarak Bala
  • Offshore Wind
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  • Online Marketplaces (Regulation)
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  • Palliative Care
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  • Support for Deaf Pupils
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  • Support for the Pig Industry
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  • Sustainable Fishing
  • Tax Avoidance
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  • Training Collars for Dogs
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  • UK Foreign Aid
  • UK Trade and Business Commission’s First Annual Report
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  • Universities: Antisemitism (IHRA Definition)
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  • Vaccinations for COVID-19
  • Valerie's Law
  • Vaping
  • VAT on Electric Vehicle Charging in Public Places
  • Violence Against Women and Girls
  • Voter ID
  • Voting System
  • Water Fluoridation
  • Wealth Tax
  • Welfare of Farm Animals
  • Young People’s Wellbeing

Andrew Selous MP South West Bedfordshire

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