Jayne Ozanne won only six votes for a Budget amendment which would have put 2.3% on fuel duty rather than Policy & Resources’ recommended 4.3% during 2026, when inflation is expected to average about 3.3%.
The move could have cut the cost of filling up an average car by up to £1, but it would have reduced States income by an estimated £400,000 next year.
‘Sadly it would not provide a major windfall to households which are really struggling with the cost-of-living crisis, though it would be far more than Policy & Resources has claimed,’ said Deputy Ozanne.
‘That said, we know that older and less efficient vehicles are most likely to be owned by those who are least likely to be able to afford an electric car, and therefore this amendment is one of the only ways I have found in our Budget of disproportionately benefitting them.’
Even before the increase in the 2026 Budget, fuel duty had already gone up at nearly double the rate of inflation over the past 10 years.
P&R president Deputy Lindsay de Sausmarez, who wants to see transport taxes comprehensively reformed in this term, argued that Deputy Ozanne’s amendment was based on a number of incorrect assumptions.
‘When you compare the lowest-income quartile with the highest, they are likely to spend roughly half as much on fuel per year – and the savings in this amendment would be felt disproportionately by wealthier drivers,’ she said.
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