[holding answer 3 December 2007]: Budget 2007 pre-announced fuel duty rates for three years for environmental reasons, to fund public services and provide certainty alongside the other tax reforms in that Budget. The Government keeps all taxes under review and will continue to monitor developments in the oil market.
It is the Government’s policy that fuel duty rates should rise each year at least in line with inflation as the UK seeks to reduce polluting emissions and fund public services. The 2007 Budget announced fuel duty rates for the next three years. The Treasury routinely receives a range of stakeholder views in the approach to the Budget and the Chancellor considers all relevant economic, environmental and social factors when deciding taxation policy.