Fuels: Excise Duties

(asked on 6th November 2017) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the total sum of revenue that it has forgone due to the successive freezes to fuel duty since 2011.


Answered by
Andrew Jones Portrait
Andrew Jones
This question was answered on 14th November 2017

Based on the Office for Budget Responsibility’s (OBR) published policy costings, we estimate the cumulative loss to the Exchequer from the successive fuel duty freezes from financial year 2011-12 to the current financial year 2017-18 to be around £37.2bn.

The annual impacts on the Exchequer are reported in the table below.

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

Exchequer impact (£m)

-2,275

-3,465

-4,645

-5,800

-6,375

-6,805

-7,825

Past decisions on freezes will also incur future losses to the Exchequer in years beyond 2017-18. The OBR’s costings of previously announced policies currently extend to 2021-22, and the future impact of these announced freezes in fuel duty to that year is estimated to be around £34.2bn.

The future annual impacts are set out in the table below.

2018-19

2019-20

2020-21

2021-22

Exchequer impact (£m)

-8,095

-8,370

-8,685

-9,030

The OBR’s policy costings are available at the following link:

http://budgetresponsibility.org.uk/download/policy-measures-database/

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