The announcement by the Chancellor means fuel duty will remain frozen for the seventh successive year in 2017, saving drivers £130 a year on average and the average van driver £350 a year, compared to pre-2010 fuel duty escalator plans.
The tax cut is worth £850m next year and means the current fuel duty freeze is the longest for 40 years.
In response, FTA deputy chief executive James Hookham said: “The Chancellor has understood the arguments made by the FairFuelUK campaign and fuel duty has moved from being a ‘sin tax’ like alcohol and tobacco duty to being recognised as a core burden on families and businesses who can be helped by freezing it. The Chancellor needs to continue that logic and recognise that reducing tax duty in future will bring even greater benefit to the economy.”
The Chancellor’s Autumn Statement also committed an additional £1.1bn investment in local transport networks in England, where he said small investments could offer “big wins”. This included £220m to address traffic pinch points on strategic roads.
Hookham said: “The increase spending on infrastructure is great news and we await the details of which specific road and rail schemes will go ahead in the next few days, but we are pleased that the East-West corridor investment between Oxford and Cambridge is going ahead. Another priority for FTA is the route of the approach roads to the new Lower Thames Crossing between Gravesend and Tilbury.
“More money for local infrastructure is welcome and we will be presenting our list of preferred schemes to local highway authorities and the devolved governments to prioritise those that most benefit freight movements.”