Environmentalists angered by fuel tax freeze
The Chancellor’s decision not to raise fuel duty at its current level has been welcomed by freight organisations – but derided by environmentalist.
Delivering the Pre-Budget Report to the Commons this lunchtime, Gordon Brown said that due to the continued volatility of the oil markets, fuel duty will be frozen for another year. Vehicle license duty will also be frozen.
He pre-faced this by saying it is still “policy that each year fuel duties should rise at least in line with inflation as we seek to meet our targets for reducing polluting emissions and fund our public services”.
And Mr Brown announced the creation of a £20 million development fund to encourage development in energy efficient technologies.
The Freight Transport Association’s chief executive Richard Turner, said: “In view of the current high level of world oil prices, this decision is sensible and welcome.”
But there was outrage amongst environmentalists.
Transport 2000 said that the decision showed that the Government was “not serious” about tackling climate change.
Its director, Stephen Joseph, said: “The UK leads the world in rhetoric on climate change but when it comes to practical action, it is a different matter, especially when it involves confronting the Great British motorist. This decision is everything to do with a coming election and nothing to do with the environment.”
Friends of the Earth’s director, Tony Juniper, said that the Pre-Budget Report had been a “golden opportunity” to offer concrete action on climate change and accused the Chancellor of “caving in” to the motoring lobby,
He said: “Abandoning this year’s fuel duty rise severely jeopardises Government targets for tackling climate change. Despite recognising the need for action on global warming, Gordon Brown’s actions today will lead to an increase in carbon dioxide levels, when it should be trying to make significant cuts. The Government wants to put climate change at the top of the international agenda, but unless it takes firm action at home it will not be taken seriously.”