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Changes to fuel duty

Fuel duty will be cut by 1p per litre from 6.00 pm on Wednesday, 23 March 2011.

In addition, the inflation rise in fuel duty planned for April 2011 will be put back until January 2012.

The rise in fuel duty originally planned for April 2012 will now be put back to August 2012.

The Chancellor also announced that the fuel duty escalator, which would have added an extra penny to fuel on top of inflation, will be cancelled for the duration of this Parliament.

Pothole repairs

A further £100 million is being made available to councils to help repair potholes in roads caused by the severe winter weather.

This is on top of the £100 million previously announced.

Approved Mileage Allowance Payments (AMAPs)

For motorists who are required to use their own vehicle for work, the Approved Mileage Allowance Payments (AMAPs) rate will rise to:

• 45 pence per mile for the first 10,000 miles (up from 40 pence a mile)
• 25 pence per mile thereafter

Vehicle excise duty rates

Vehicle excise duty rates will increase in-line with the Retail Price Index (RPI) in 2011-12.

Rates for Heavy Goods Vehicles will be frozen.

Air Passenger Duty

Air Passenger Duty will be frozen for 2011-12, and the RPI increase has been put back until April 2012.

A consultation on reform of Air Passenger Duty has been launched. To find out more, folllow the link below.

• Air passenger duty consultation - HM Treasury Opens new window