Drivers in Wales have been left with mixed views after yesterday’s historic Budget which saw fuel duty frozen for another year.
Motorists facing the impact of 20mph speed limits may find some relief in the Chancellor’s recent decision to freeze fuel duty, which will benefit an estimated 2.1 million people in Wales.
This tax cut, worth £3billion, could see savings of £59 next year, with van drivers potentially saving £126 and Heavy Goods Vehicle operators saving £1,079.
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The Welsh Government will unveil its own Budget in December
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The Chancellor’s decision to freeze fuel duty was not taken lightly. In Reeves’ address to the House, she acknowledged the difficult fiscal position but concluded that raising fuel duty would be “the wrong choice for working people”.
Without this intervention, fuel duty would have risen by 7p per litre. RAC head of policy Simon Williams welcomed the move, stating that drivers will “breathe an enormous sigh of relief”.
But drivers in Wales have remained concerned about the impact of 20mph limits on fuel economy with some stating it will have “little impact”. This challenge particularly arises in urban environments where frequent slowing and accelerating for obstacles, lights, and junctions affect fuel consumption.
Experts detailed that while steady speeds can be efficient, the “stop-start” nature of urban driving at 20mph may impact overall fuel economy.
Welsh political figures have expressed differing views on the Budget and its implications for Wales. Peter Fox, Welsh Conservative Shadow Minister for Finance, criticised the Budget as “nothing but a cash grab” from Labour politicians.
In contrast, Finance Secretary Shona Robison in Scotland acknowledged the impact the Budget will have on the nation but warned, after 14 years of austerity, “it’s going to take more than one year to rebuild and recover”.
Plaid Cymru leader Rhun ap Iorwerth was critical of the Budget’s impact on Wales, stating it “blew a gaping hole” in promises of benefits from two Labour Governments working together.
Drivers sharing their views on social media have also weighed into what the fuel duty freeze means for them. One person questioned: “What about Wales?”
Another motorist detailed how while it offers temporary relief, drivers in Wales face other cost pressures such as car insurance premiums rising and new Vehicle Excise Duty rates next year.
Some worry about potential future pay-per-mile schemes and inevitable fuel price increases due to rising costs for fuel companies, although HM Treasury has ruled out introducing these measures.
Another driver shared that the focus needed to be on First Minister Eluned Morgan. They stated: “Her claims that she doesn’t think local government finances are in trouble and that no council will go bankrupt shows she has her head in the sand.”
Wales is set to unveil its own Budget in December with Finance Secretary Mark Drakeford stating that while the Chancellor’s Budget is designed to create growth the wider financial “context is still difficult, we will be making our spending decisions as we develop our Draft Budget in the weeks ahead”.
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Fuel duty has been frozen at 5p per litre since 2022PAThe Chancellor announced that the Welsh Government will be provided with £21billion for the next fiscal year in the Budget which can be used towards improving infrastructure, roads and public spending.