Fuel duty will be frozen for the ninth year in a row, Theresa May has pledged, an announcement that will leave the chancellor with a deep hole to fill in his October budget. The Institute for Fiscal Studies thinktank estimated the policy, which has been in place since 2010-11, costs the Treasury about £9bn a year. May announced the freeze at her Conservative party conference speech in Birmingham on Wednesday. The Treasury had been considering a rise for the first time in eight years as part of a package of measures to help fund the £20bn-a-year increase in NHS spending announced earlier this year. The chancellor, Philip Hammond, took the unusual step of pointing out the cost of the policy when it was announced on Wednesday. He said the freeze had “come at a significant cost to the exchequer, but the high oil price and the near-record pump price of petrol and diesel are also imposing a significant burden on motorists”. An inflation-linked increase would have raised £800m extra for Treasury coffers next year, and billions more over subsequent years. In September, Hammond suggested the freeze had amounted to £46bn in lost revenue over eight years. May acknowledged there had been discussions about ending the measure. “Some have wondered if there would be a thaw in our fuel duty freeze this year,” she said. “Today I can confirm that in the budget later this month, the chancellor will freeze fuel duty again.” It was claimed the last-minute announcement had come after May’s big policy package on immigration was announced a day early, in part an effort to distract from a big-ticket conference appearance by the former foreign secretary Boris Johnson, the fiercest critic of May’s Brexit proposal. The prime minister said the government was showing families they were “on their side” and that to have a “little bit of money left to put away at the end of the month” is not “measured in pounds and pence”. “It’s the joy and precious memories that a week’s holiday with the family brings. It’s the peace of mind that comes with having some savings,” she said. “Many people in towns and cities across our country cannot take these for granted. They are the people this party exists for. They are the people for whom this party must deliver.” The move was criticised by environmental campaigners. The Green party MP Caroline Lucas said: “Dirty air is killing thousands of people every year, and the government is breaking the law with its negligent failure to cut pollution. The last thing we need is another subsidy to encourage more cars on to our roads. “Instead of paying for petrol, she should be investing that money into modernising our creaking public transport network and making our streets safe for walking, cycling and breathing.” Ministers are still grappling with how to fund the prime minister’s NHS promise. May has said tax rises would be needed to pay for the funding increase, but promised this would be done in a “fair and balanced” way. Any fuel duty rise would have faced a significant backlash from Tory MPs. Robert Halfon, one of the most outspoken on the issue, said it was “great news for motorists”. “Motorists are safe for another year,” he said. “I’m delighted that the Treasury has listened to millions of drivers across the UK. The fact remains that lower fuel duty means a boost to the economy.”
UK Prime Minister Theresa May has pledged to extend UK petrol duties for the ninth consecutive year during her keynote speech at the Conservative party conference . Chancellor of the Exchequer Philip Hammond that although the Treasury would have benefitted to the tune of £ 800 m ( $ 1bn ) , fuel duties imposed a " significant burden " on the economy . It was suggested the additional funds would have been used for the £ 20bn ( $ 26bn ) annual injection into the National Health Service . The Green party leader Caroline Lucas criticised the freezing scheme and accused the government of " negligent failure " in cutting pollution .