Motorists welcome Gordon’s big freeze

The RAC Foundation today welcomed the Chancellor’s decision to again freeze fuel duty as "a big freeze that the motorist will welcome."

Edmund King, Executive Director of the RAC Foundation, said "We are delighted that the Chancellor has again shown ‘Prudence at the Pumps.’ High fuel tax impacts most strongly on the poorest families, for whom running a car can eat up 25% of the household budget, and this decision is a welcome Christmas bonus for them."

The Chancellor has already recognized that high oil prices damage the UK economy. However, the Foundation is concerned that the PBR’s tax increases on oil companies might drive up fuel prices regardless, and calls on oil companies not to pass this tax on to the motorist through higher pump prices.

The RAC Foundation renewed its calls for a fuel duty stabilizer, through which motorists and the Exchequer would share the impact of rising and falling oil prices. Private motorists and UK hauliers would then be protected from spikes in the global oil price.