Recommendation 18

The March 2021 Budget took place the week before our session with HM Treasury and HMRC on environmental tax measures. The Budget did not include any particular announcements on green taxes. It did however freeze fuel duty rates for the eleventh year. The Budget said the freeze would support hard-working people across the UK, particularly in more rural communities. The Budget also signalled that fuel duty rates for future years would be considered in the context of the UK’s commitment to reach net zero emissions by 2050.32 The previous Budget in March 2020 had also said that fuel duty rates will be considered alongside measures that are needed to help meet the UK’s net zero commitment.33 The government’s decisions on fuel duty rates highlights a key tension. There is a need for long-term planning, but Budgets are annual and led by day-to-day politics and issues.34