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Finance Act 2010

Background Note

8.At Budget 2009 the Government announced that the duty rates on main road fuels would be increased on 1 April from 2010 to 2013 by 1ppl above indexation in each year and that the effective rates of duty for non-road fuels would be increased by the same percentage as road fuels; that the duty increases on natural gas would maintain the differential with the main road fuels; and that the differential for road fuel gas other than natural gas would be reduced by the equivalent of 1 penny on a litre of petrol each year. Budget 2010 announced that the increases would be implemented in stages in order to ease pressure on incomes at a time when other prices are rising, and that with effect from 1 April 2010 the main road fuel duty would be increased by 1ppl with consequential effects on rebated fuels and road fuel gases.

9.Budget 2008 announced that the duty differential for biofuels would cease in 2010-2011 and the duty would be charged at the same rate as the main road fuels. The 2009 Pre-Budget Report confirmed that this would take effect on 1 April 2010.

10.Duty on leaded petrol is increased with effect from 1 April 2010 by 1 ppl and duty on aviation gasoline is increased by 3.78ppl.

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