Lockdown costs Treasury £2.5bn in lost fuel duty

The coronavirus lockdown has cost the Treasury more than £2.5 billion in lost fuel duty, figures show.

Provisional statistics published by HM Revenue and Customs show the Government received £4.1 billion in duty on petrol and diesel sales between March and May, compared with £6.6 billion during the same period in 2019.

Prime Minister Boris Johnson placed the UK on lockdown on March 23, limiting the reasons for leaving home.

AA president Edmund King said: “These startling figures show that the collapse in car use is costing the Treasury billions.

“The AA’s tracking of car trips since March 23 showed a fall of up to 80% of trips in the early weeks of lockdown.

“Even though traffic has increased in recent weeks it is still much lower, particularly in the evenings and weekends, which is also reflected in our breakdown figures.

“These new statistics illustrate just how much central and local government rely on tax, parking charges and fines from car owners to support public finances.”

Motorists pay 57.95p in fuel duty for each litre of petrol and diesel they buy.

The amount has been frozen since March 2011.