Increases in fuel duty this week could ‘disproportionately’ impact drivers - ‘Very difficult’
WATCH: Samuel Kurtz MS voices concerns over Rachel Reeves' Budget
BBC WALES
The Welsh Conservatives have slammed Chancellor Rachel Reeves over fuel duty hikes which could be introduced in this year’s Autumn Budget.
One Member of the Senedd warned that if costs were to increase by the anticipated 7p, it would have a "severely negative impact” on rural Wales specifically.
Samuel Kurtz, MS for Carmarthen West and South Pembrokeshire warned that the upcoming cost increases would disproportionately affect rural Wales.
He warned how drivers could be in for a “very difficult time” in Wales if the Budget announces more tax increases.
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Fuel duty has been frozen at 5p per litre since 2022PAThe warning comes after reports the current fuel duty freeze could be axed with Reeves instead increasing it by 7p to help claw back the £22billion funding black hole left over by the previous Conservative administration.
Kurtz told GB News: "While Halloween may fall on Thursday, October 31, the truly frightening event might arrive a day earlier, with Rachel Reeves set to deliver Labour’s Budget on Wednesday.
"Increases in fuel duty, pay-per-mile taxes, and potential changes to Agricultural Property Relief will all strike at the very foundations that keep our economy running. So far, it appears to be a Budget crafted by those with little understanding of rural Britain, as each of these measures would disproportionately affect rural communities and businesses.
"If APR changes go ahead, the farming protests witnessed in Wales earlier this year will seem small in comparison to the scale of protests that may follow."
Instead of increasing fuel duty, experts have called for the Chancellor to introduce road pricing instead which could help level the tax field for petrol, diesel and electric cars for the first time.
Sue Robinson, Chief Executive of the National Franchised Dealers Association, also warned against imposing higher fuel costs on British motorists during a time of global instability.
Meanwhile, Grant Klein, Transport Leader at PwC UK, explained that there needs to be a new policy put in place to fill the black hole left by a reduction in the fuel duty generated from the purchase of petrol and diesel as more people switch to EVs.
He detailed: "Policy options for the Government include a step towards a fuel duty alternative for EVs, similar to that seen in Iceland and New Zealand, which could see users required to self-report mileage and pay digitally."
In a bid to not disrupt the electric car transition, some experts have suggested increases to fuel duty could help prevent EVs from getting charged and still act as an incentive.
A recent study, "Vehicle Taxation: The Next 25 Years", suggested that the proposed road tax policy could have a "detrimental effect" on the UK’s electric vehicle uptake.
The report recommended ruling out pay-per-mile road pricing and instead proposed modest increases in fuel duty of two pence every three years to help offset the charges Evs would face.
Ben Nelmes, CEO of New AutoMotive, said: “Electric cars aren’t a sin to be taxed but a boon for the economy. Our recommendations suggest a way forward for the Chancellor that is simple and would avoid the kind of bad outcomes seen in other countries that introduce pay-per-mile charging on electric cars.”
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Drivers are hoping that fuel costs fall in the near future PAThe report also called for a reform of the existing Vehicle Excise Duty to ensure fairness across all vehicles. VED has been the current car tax system in place for the past 100 years.
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