'Drivers will be staggered by how much the burden of fuel duty contributes to environmental tax in the UK'
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Drivers make up the vast majority of environmental taxes through fuel duty payments, as experts call for the Government to lessen the impact on hard-pressed motorists.
New data from the Office for National Statistics (ONS) has revealed that revenue raised from fuel duty contributes a staggering 45 per cent of environmental tax.
In total, environmental taxes raised £54.3billion in the UK last year, although this is a 0.5 per cent drop compared to the £54.6billion the year prior.
Alongside fuel duty, environmental taxes include transport, such as the Air Passenger Duty, and taxes from pollution and resource, like the Plastic Packaging Tax.
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Petrol and diesel drivers make up the bulk of environmental taxes through fuel duty
PA/GETTY
Last year, fuel duty on petrol, diesel and other fuels raised over £24.6billion, more than 60 per cent of all tax revenue under the "energy" umbrella.
Other contributors to environmental energy revenue by tax type include Renewable Energy Obligations, UK Emissions Trading Scheme, Contracts for Difference and the Climate Change Levy.
Roughly 40 per cent of transport tax was paid by households through Motor Vehicle Duty, which accounted for £5.1billion.
Jack Cousens, head of roads policy at the AA, said: "Drivers will be staggered by how much the burden of fuel duty contributes to environmental tax in the UK.
"Most will accept that fossil fuel car use comes with some level of tax penalty but the share of the tax-take will be a shock."
He also noted that many environmental taxes levied on councils against motorists are disguised as "charges", with suggestions that the frequency of these costs has "ballooned" since 2008.
This was highlighted by the Parliamentary Transport Committee in 2009, which stated that it was "concerned at the increasing trend" to base service charges.
The report added that these charges, such as parking charges, are to be used for wider policy purposes, they should be "proportional, explicit and properly justified".
Cousens added: "Environmental taxes now being levied by councils, including those that can reasonably be labelled as stealth taxes, include CO2-related residents parking permits, diesel-related residents parking permits, diesel-related public parking charges, workplace parking levies, city or town parking costs where the council has stated a CO2 justification for high fees.
"These types of charges potentially discriminate against low-income households who may own older cars but don’t use them much."
Chancellor Rachel Reeves announced in last October's Autumn Budget that she would be taking steps to freeze fuel duty again, much to the surprise of many industry experts.
The 5p per litre cut to fuel duty has now been frozen until March 22, 2026, with estimates that it could represent a saving of £59 for the average car driver.
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Chancellor Rachel Reeves unveiled the fuel duty freeze in October's Autumn Budget
PAThe Chancellor stated that the tax cut would be worth £3billion over 2025-26, while the planned inflation increase for the same time period was also cancelled.