UK Budget 2023: fuel duty frozen, more money for fixing potholes

A freeze on fuel duty and more cash for local councils to fix potholes were the big headlines for motorists in today's budget statement from chancellor Jeremy Hunt.

There was predictable interest from a packed House of Commons amid a time of financial turmoil for many – the chancellor said that he was presenting what he called his “budget for growth”, aimed at boosting prosperity in the country.

With government finances under pressure, however, there was hardly any room for the chancellor to splash the cash, so the main takeaway for drivers is no change. The temporary 5p cut in fuel duty announced last year was due to run out next week, and combined with an annual scheduled inflationary rise in the taxes on petrol and diesel it would have meant an 11p per litre rise in fuel costs.

Speaking to MPs, the chancellor said that he had decided “now is not the right time” and that he would be freezing petrol and diesel taxes at their current rates. Reports ahead of the budget statement suggested that Treasury officials were pushing for an increase in fuel duty – until last year's cut it had been frozen since 2011.

Your car suspension can breath a sigh of relief too – the chancellor also announced a £200m boost for pothole repairs in 2024/25, adding to the £500m pot previously announced.