Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential benefits to the economy of reducing both fuel duty and VAT on all fuels.

Fuel duty was frozen for its sixth successive year at Budget 2016, saving the average driver £75 every year compared to the pre-2010 fuel duty escalator plans. Like all taxes, the government keeps fuel duty under review, with all options considered and announcements made at fiscal events. Under the current legal framework there is no scope to apply a reduced rate of VAT to all fuels.