Thursday 7 March 2024

Spring Budget confirms fuel duty freeze

Spring Budget confirms fuel duty freeze

The Chancellor has confirmed the decision to keep the current fuel duty rates unchanged for the next year.

Moreover, during his Spring Budget speech, Jeremy Hunt announced the extension of the temporary 5p reduction on fuel duty, originally set to expire this month.

As per the Chancellor’s statement, this move is anticipated to save the average car driver £50 over the next year, with total savings reaching around £250 since the inception of the 5p reduction.

The initial introduction of the 5p reduction in fuel duty was spearheaded by Rishi Sunak during his chancellorship in 2022, following the surge in oil prices triggered by Russia’s invasion of Ukraine.

Initially intended to last for just a year, the reduction was subsequently renewed last March.

Green Industries Growth Accelerator 

The UK Government has also unveiled plans to allocate up to an additional £120 million for the Green Industries Growth Accelerator, aimed at bolstering the expansion of low carbon manufacturing supply chains nationwide.

Contracts for Difference 

In its Spring Budget announcement, the government has outlined a roadmap for investment in the UK's renewable energy sector, unveiling the parameters for Contracts for Difference Allocation Round 6 (AR6).

This includes a record-breaking budget allocation of over £1 billion, the largest ever for a single round.

Nuclear power 

Highlighting the significance of the civil nuclear programme in achieving energy security, the government underscored its commitment to exploring additional large scale reactor projects alongside Hinkley Point C and Sizewell C.

Notably, Great British Nuclear is spearheading a competitive process for the selection of small modular reactors, with six companies invited to submit initial tender responses by June.

In a move aimed at securing sites crucial for the success of the nuclear programme, the government has finalised a £160 million agreement with Hitachi to acquire the Wylfa site in Ynys Môn and the Oldbury-on-Severn site in South Gloucestershire.

It's emphasised that no decisions have been made regarding specific projects at this stage.

Written by

Sumit Bose

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