To ask the Chancellor of the Exchequer, what assessment he has made of the environmental impact of freezing fuel duty while raising rail fares above the level of inflation.
Answered on
11 March 2021
Households spend a significant amount of their total spending on transport fuels, and fuel costs are a factor in helping the competitiveness of British businesses. These are particularly important considerations in light of the ongoing COVID-19 pandemic with households moving away from public transport towards using their own vehicles to avoid furthering the virus’ spread. As set out at the Budget, future fuel duty rates will be considered in the context of the UK’s commitment to reach net-zero emissions by 2050.
The government is taking action to reduce carbon dioxide emissions and improve air quality through Vehicle Excise Duty and the Company Car Tax system. As announced in the Ten Point Plan, the UK will end the sale of new petrol and diesel cars and vans by 2030, ten years earlier than planned. The transition away from petrol and diesel cars and vans will make a vital contribution to meeting our Net Zero commitment.
Rail fares increased by 1% above inflation (2.6%) on 1 March 2021 – this is the lowest actual increase in four years. A small rise is necessary to ensure crucial investment in our railways. The government temporarily froze fares, enabling passengers to purchase tickets at a lower price until 28 February. Passenger demand has fallen dramatically over the last year and its recovery is uncertain. The government will continue to work closely with industry on initiatives to support demand and revenue recovery when the time is right, including actively working with train operators to develop a solution that offers better value and convenience for those who commute flexibly.