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<p>Households spend a significant amount of their total spending on transport fuels,
and fuel costs are a factor in helping the competitiveness of British businesses.
These are particularly important considerations in light of the ongoing COVID-19 pandemic
with households moving away from public transport towards using their own vehicles
to avoid furthering the virus’ spread. As set out at the Budget, future fuel duty
rates will be considered in the context of the UK’s commitment to reach net-zero emissions
by 2050.</p><p> </p><p>The government is taking action to reduce carbon dioxide emissions
and improve air quality through Vehicle Excise Duty and the Company Car Tax system.
As announced in the Ten Point Plan, the UK will end the sale of new petrol and diesel
cars and vans by 2030, ten years earlier than planned. The transition away from petrol
and diesel cars and vans will make a vital contribution to meeting our Net Zero commitment.</p><p>
</p><p>Rail fares increased by 1% above inflation (2.6%) on 1 March 2021 – this is
the lowest actual increase in four years. A small rise is necessary to ensure crucial
investment in our railways. The government temporarily froze fares, enabling passengers
to purchase tickets at a lower price until 28 February. Passenger demand has fallen
dramatically over the last year and its recovery is uncertain. The government will
continue to work closely with industry on initiatives to support demand and revenue
recovery when the time is right, including actively working with train operators to
develop a solution that offers better value and convenience for those who commute
flexibly.</p><p> </p>
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