Government urged to extend fuel duty freeze
The government has been urged to announce an extension to the fuel duty freeze in its Autumn Budget.
The 5p freeze is in place until December but Hippo Leasing has said it must be extended into 2027.
It has also called on the government to level the playing field for electric vehicle charging at home and through the public charging network.
Chief executive officer Tom Preston said: “Drivers have faced relentless pressure on their monthly household budgets over the last few years, so extending the fuel duty freeze into 2027 is an absolute priority. If the planned duty increases are allowed to stand, motorists will see almost £3 added to every fill-up on a standard family car. At a time when everyday costs remain high, drivers need stability at the pumps, not another tax hike.
“Equally, the current 20% VAT rate on public EV charging effectively penalises motorists who don’t have a driveway. Right now, it costs more to plug in on the street than it does at home, and that’s exactly backwards for the drivers who don’t have a driveway, often the ones we most need to bring into EVs.
“The people paying more are usually the ones who can least afford it, such as renters and flat-dwellers – essentially, anyone without off-street parking. Equalising public charging VAT with the five per cent domestic rate could save high-mileage EV drivers around £389 a year, making electric leasing far more accessible for urban households.
“Alongside clear guidance on how the 2028 pay-per-mile tax will actually work, this Budget is a critical opportunity for the Treasury to give drivers the transparency they need to plan their long-term motoring costs.”
