Duty rise set to bring fuel tax to 71% in 2 weeks
10348 Comments | Add Comment | Blog entry posted 18th March, 2009
In just 2 weeks fuel duty will rise again, bringing the total tax paid at the pumps to 71 pence in every pound – despite Prime Minister Gordon Brown promising not to raise fuel duty.
Watch Brown pledge to freeze fuel duty. (1.40m – 2.02m)
Fuel duty is set to rise by roughly 2 pence per litre on April 1st meaning that 66 pence of the average litre of fuel goes directly to the Treasury.
Fuel tax goes into a central government tax pot. It’s not necessarily allocated back out to motoring, so fuel tax can be spent on anything – the NHS, housing, pensions or even banking bailouts.
At the height of soaring pump prices Brown made a promise during Prime Minister’s Questions on July 16th 2008 not to raise fuel duty for a year.
He stated: “In recognition of the problem people face with petrol, we are freezing duty on petrol for the full year.”
Brown broke this promise in December 2008 when he added 2 pence per litre to fuel duty to offset the reduction of VAT to 15% – a move which angered UK hauliers who are able to claim fuel VAT back, but not fuel duty.
He is set to break the promise for a second time on April 1st when fuel duty on unleaded and diesel will rise 1.84 pence per litre. Including the additional 15% VAT on top this will make the rise at the pumps around 2 pence per litre.
The Treasury have said that the only time further changes to fuel duty can take place are at the next Budget – which has been postponed from March until April 22nd, after the duty rise comes in.
Do you think the Budget has been postponed to push through a duty rise unchallenged? Do you think it’s fair that 71% of the cost of a litre of fuel goes directly to the Treasury? Should Brown be held to account for breaking his promise not to raise fuel duty? Leave a comment below and let us know your thoughts.
Replies to Duty rise set to bring fuel tax to 71% in 2 weeks
Adam Mchugh March 18, 2009
I am a partner in two companies which are totally diverse, but both rely heavily on transport.
One is a firm of financial advisers where we use our cars regularly to travel to appointments to see clients, at a time to suit them.
The other is a textile recycling company where the vans and lorries are always on the road either collecting or delivering goods.
Another increase in fuel duty will only raise our costs further and ultimatly the cost to the customer of our services.
Surely it is time for this unelected prime minister to go. He could not manage the economy as chancellor when times were good, and has proved even more inept as prime minister now that times are bad.
Lynne Mason March 18, 2009
It makes my blood boil that we have to pay for the blunders the government make daily. It is easy way for the government to raise revenue. Also there used to be only a difference of a penny between unleaded and diesel but diesel is at least 10p a litre more expensive. I think that the one of the biggest consumers of diesel is hauliers and freight carriers therefore if the Government keep the diesel cost high they can easily generate tax money to to pay for mistakes - easy money! Money for bailing out the banks, paying outragous pension pay-offs, for the failing NHS, paying for social scroungers and immigrants wanting an easy life in Britain and many many more I could list.
Anna Bushby March 18, 2009
The UK government are really after the working person aren't they.. we have to work & therefore travel to work (me persoanlly 50 mile round trip with no public transport option viable) & they are determined to keep on emptying our pockets..
is it just me or are we simply working to pay taxes!! just not on.. they need to be reducing it not upping or freezing it..
Clive Kelly March 18, 2009
Its simple - once again the Government have gone back on their promises. Again they have hit the 'soft target' of the motorist and again we find ourselves having to pay out on an essential commodity. This time however it is different, we are in the middle of a financial crisis with 2 million unemployed and a failing transport system. How dare Brown and his cronies hit everyone on every scale of income at a time when we need help. It has decided my vote come the election.
Kuldip S Flora March 18, 2009
Why does the government insist on bailing out failing banks with our money and tax us again through things like fuel tax? Why can't the banks be left to sort their own mess out and let the poor motorist alone it's insane with prices as they are to be taxed more is just unbelievable!!!!!!!!! I'M NOT sure the Tories will be any better because their leader is naive
Hilary Blackman March 18, 2009
Why is it that our government cannot manage their books without keep putting petrol up. This not only affects the everyday motorist, it affects every business and these additional prices are then passed on to the customer.
Surely a promise is a promise and if they say prices are not going up, they should not go up. How can anyone believe a word we are told by government.
Chris Collins March 18, 2009
I can't agree with the bulk of comment. Taxes need to increase, radically, and I would rather the blow fell on fuel than income directly. Give people an incentive to drive less, drive better (more slowly, fewer gear changes, gunning after lights), buy smaller and/or more efficient cars.
Very Angry March 18, 2009
This basically amounts to daylight robbery in my opinion. Tell me please, how does this country remove our current Prime Minister from his seat of office?
Douglas Morrison March 18, 2009
I WORK IN THE TRAVEL INDUSTRY SPECIALISING IN SELLING AIRFARES.
OVER THE LAST FEW MONTHS,A NUMBER OF AIRLINES HAVE ACTUALLY E-MAILED ME TO ADVISE THAT THE FUEL SURCHARGE TAX IS COMING DOWN,
SO WHY IS THE GOVERNMENT RAISING THE COST OF FUEL/PETROL.
Phil Honey March 18, 2009
I wouldn't trust Gordon Brown to keep his word on anything. It's a good job he wont be there after the next election.
It's a public scandal that so much tax is taken off us for something that is essential. If the government didn't waste so much of OUR money abroad then we wouldn't have to pay so much tax.
Sheila Garcia March 18, 2009
When is this Government going to stop lying to us! No increase on fuel duty for a year should mean just that and not LESS than a year. Families are already sufffering enough with the damage this Goverment has caused with the financial fiasco and people losing their jobs and houses.
Gordon Egger March 18, 2009
Hi, You can not trust polititions what so ever anymore, I just wonder why people still vote for these people. What they say is just a lot of hot air and not more.
Stuart Williamson March 18, 2009
Does he think we are all stupid as he tries to slip in yet another increase in the price at the pump.
They should be cutting the tax on fuel so as to give the tax payers a break, times are hard enough.
This government is going to the dogs, but then again it does not matter who is in power we will still be subjected to unfair taxes.
James Clark March 18, 2009
I suppose it's too late to point out that things have got worse not better since this pathetic government froze the last rise in order to fend off the threatened revolt by haulage firms that would have had the support of the whole country.
We are not bothered about Brown saying sorry for the mess that he has caused, just go for an election SOON.
Christine Arrowsmith March 18, 2009
The news says that petrol companies have not passed on the fall in the cost of fuel, perhaps if that was passed on the rise would be invisible!
Keith Nicholls March 18, 2009
Gordon Brown might well wish to change his name to Richard Turpin (blog seems to think his real forename is a "bad" word and won't let me use it!!) - highway robbery seems to be a mutual attribute.
Still, how else can this government preserve the ranks of bloated plutocrats who pretend to govern us. They have ballsed up the banking system so now we all have to pay. PS Oil prices have gone down by 60%+ from their peak, why haven't pump prices??
Ernie Swain March 18, 2009
They make a great song and dance about dropping their petrol prices and then "sneakily" push them up again when nobody is looking :-)
Jonathan Porter March 18, 2009
I think it is dispicable, a political leader should not be able to break their promise like that
Roger Mcdermaid March 18, 2009
This discredited government just hates the motorist.To hike fuel taxes up again is a disgrace.We must be the highest taxed in the world.It`s high time the British people stood up and said no more. We should all blockade the fuel depots .The likes of Broon has had his day and I can`t wait till he`s booted out.A disgracefull tax and the worse thing is you can`t even drown your sorrows as the blighter has taxed that out of existance too.
Capri March 18, 2009
Why can't this government get simple things right?
Increasing fuel duty will help 'them' in the short term but also help to close many more smaller businesses as they struggle to pay increasing haulage costs but having decreasing clients to sell on to.
The knock-on effect will encase us all in one way or another.
I was attending a court matter today and the huge amount of businesses with winding up orders against them or voluntary liquidations and house repossessions was staggering. In fact it was overwhelming.
It scared the b'jeez out of me.
Rog B March 18, 2009
It is not just the stelth increases on road fuels but we also appear to be stung with the differential between Petrol and Diesel fuel - EU are cheaper and even in SA it is cheaper - but not here !
Dave March 18, 2009
Time to vote these clowns out... No fan of the other parties but any one of them couldn't do a worse job then these people who take us for fools.
Sharon March 18, 2009
I think appalling that we should be paying as much at 66% tax on every litre of petrol, the highest in Europe for all accounts. The British Public are always paying ludicrous prices for basic commodities. Not only have we bailed out the banks and financial institutions from their monumental errors, no doubt something that will be taxed for in the future, we now faced with repaying a tax concession which was introduced to encourage us to spend yet more money.
Vikky Edwards March 18, 2009
I cannot believe the Governement is going to do this again, well I can. At this rate, I won't be able to afford to leave my house.
When the fuel was at it's highest last year it was costing me £75 to fill up my Golf. I have to drive quite a long way to work so it was costing me around £280 just to get to work. It got to the point where I was forced to take annual leave because I could afford to put fuel in my car to get to work!! This country is a joke politically and I for one have had enough. Time to re-train and move abroad I feel. I do not want my child to struggle like I have to because of a greedy Government that saves Banks that can't run their businesses properly but not it's people. Enough is enough.
Jbenfie March 18, 2009
Don't think we should be surprised at an increase in fuel duty - someone has to pay for Sir Fred's RBS pension and that will come from our taxes, one way or another. Still Gordon (superman) Brown is saving the world isn't he!
Norman Askew March 18, 2009
Car firms are working short time and making workers redundant. Train companies are increasing prices AND cutting services. Unemployment is at a record level and the money in our pockets is getting less and less. What a good time for the Government to increase fuel duty. This will not only make it more costly for the average mororist but it will put up the price of everything else as haulage firms simply can't absorb the increase and will have to pass it on. Result - everyone has even less money!
R Monks March 18, 2009
They are all nothing but a bunch of liars and vagabonds, I saw the employment minister lie through his back teeth this morning on national television, it means nothing to them as long as they stay in power.
David Watters March 18, 2009
Some of live in remote rural communities where use of a vehicle is essential - it is just insulting to go on taxing us out of existence.
Mike Martin March 18, 2009
Once again this government goes back on promises and then try to use weasel words to get out out of the predicament they find themselves in. They were quick to raise duty when the VAT rate changed to compensate and now they are plunging the knife in once again. I am still baffled why diesel is on averge 5p to 7p per litre more expensive than petrol is this another swipe at the haulage industry?
Before the prices went through the roof during last summer diesel and petrol were the same price but since prices have come down diesel seems to have stuck at a higher level. Does any one know why?
Dave Ross March 18, 2009
Well, somebody has to pay for all the bank (retirement fund) bailouts. Looks like it will be the motorist, no big surprise there!
Tom Hard March 18, 2009
Once again a rise in tax where people have no choice but to buy the product, the alternative of public transport is still not viable. This will once again filter down onto lots of other products as hauliers have to pass on their costs so expect everything you buy in a shop to rise.....i struggle to see another option barring driving to work and back and nothing else. Frustration is a polite word for my current feelings on this....
David Jones March 18, 2009
Yet another rip off tax from this goverment who uses the road users as an easy target. The most taxed country again - what a surprise.
Graham Wilson March 18, 2009
How is this country supposed to remain competetive when haulage businesses are shackled with higher fuel prices than our European counterparts?
Is it any surprise when vehicles and drivers from countries with less stringent rules than ours seem to be involved with major accidents that cost our health and emergency services a fortune, hence the diversion of taxes on the driving community? This is not protectionism or anti-european, simply a matter of making sure we operate on a level playing field, which is something we have not been doing for some considerable time!
Chrissy Bright March 18, 2009
I think it is a disgrace that it is going up again as haven't we enough to cope with at present with the cost of everything rising and the recession. The motorists are targeted so much and as such the car industry is going to wrack and ruin. We have the highest prices of petrol in the whole of Europe -even Switzerland isn't as high as here in the UK. The government should try and keep the prices down.
Lauren Johnstone March 18, 2009
People are still being made redundant and companies are still folding and they want to increase fuel duty, AGAIN! Totally disgusting. All the PM's are on film star wages so they won't notice a thing and do they even care?!
Edd Shipton March 18, 2009
Oh dear, well I suppose someone has to fund the bank rescue programme, so let's summerise -
The banks screw us with the cost of borrowing (if indeed you can borrow)
The fuel companies screw us by sneaking the cost of fuel up everytime our backs are turned
The rail companies insist on above inflation fare increases
Council tax up
Stealth taxes up
The only way to beat the system is to bring a once profitable bank to it's knees 9well done Sir Fred!!!)
The Government screw us every which way
John Tait March 18, 2009
Disgraceful. Kick us while we are all down. If you want to stimulate the car industry, cut diesel fuel taxation.
Ian Watson March 18, 2009
Time to get down to the chippy and recycle the old cooking oil.
Jayne Stacey March 18, 2009
Hi
I think this country must have lost its mind and senses. To keep on raising the cost of fuel while giving hand outs to greedy incompetient bankers is a perfect example of madness, in my opinion.
We must be the laughing-stock of Europe if not the World.
Tony Lewis March 18, 2009
Fuel duty is due to go up, once again proving that the Government does not adhere to the promises it makes to those who elect them.
The duty will go up by 2p, and the VAT will therefore also rise, so the cost of fuel will not go up byu only 2p - more likely 3p, rounding up to the next .99p. this will hit everyone, including those who do not own or use a vehicle, because all services will be affected - public transport and deliveries alike.
It will not be long until the next election. Is the govrnment pushing the duty up, so that they can 'magically' find a reduction in duty as a sweetener before the election? This would not surprise me. What would surprise me is if the electorate fell for such a ploy!
Leigh Pegg March 18, 2009
Disgraceful underhand stealth tax yet again.
Do you not realise that there is a credit crunch on!
Janice Hithell March 18, 2009
Noticed petrol prices going up on a daily basis. With this extra fuel duty it means they will go up even further. Why is it that motorists always seem to pay for just having a car, not even for luxury reasons but necessity reasons?
Richard L March 18, 2009
I must say that this is starting to really get on my nerves - we all agree that these price hikes are ridiculous and that we are all getting ripped off by our own Government who in essence are a bunch of wasters who spend most of their time dreaming up how to cover up their own lies. Think about this though - We should aim to have a mass week of public action during that week no one should buy petrol/diesel, and possibly stop using our cars - work from home - take leave - even get public transport - given the mechanisms for delivery of fuel and amount of duty that is raised per week on fuel sales this could potentially have a big effect. If it was well publicised it could create alot of pressure on the Government. Does not require the refineries to be blocked as the tankers would have no where to go anyway. does not require any positive action - actually quite the opposite just not doing or going anywhere. - Anyone up for it....
Pippa Hartley March 18, 2009
It's a disgrace ! The government are doing nothing to help the middle class working family, and despite the current economic climate, they are increasing costs. How much extra have the government had from extra council tax from new build properties, an increase in speed camera, victim surcharge fines, and so on?
Peter Cawdell March 18, 2009
What do we expect from this despicable rable - we just don't trust anyone from the present government - they lie every time they open their mouths. The sooner they are despatched from government the better.
Colin Caldicott March 18, 2009
Once more, despite this double talking government's promises to help business get through 'difficult times' they find another way to use them as a personal source of funds to help fill their coffers and cover the many blunders of the last 12 years. It's businesses that have to bear a major burden of stealth taxation, and unlike VAT, duty is not reclaimable, so its yet another increase in overhead that eventually gets passed onto the end user. Like business rates, it's a non value added element that reduces efficiency, and just continues to help the steady decline in competitiveness
Andrew Gray March 18, 2009
We're in the middle of a recession and yet stillthey want to penalise the public some more! No doubt the forecourts will use the duty rise to sneak another penny or two profit out of us - I bet the rise at the pumps will be more like 3 or 4p. And recently the price of oil has gone down so why are we still paying so much anyway?!
Brian Paskin March 18, 2009
As expected. Prices seem to be going up anyway! Watched the vid and the PM says "the" full year so I suppose he's wriggled off the hook about it being for a whole year from when he said it. Sorry, Steve M I read a bit of the barney you had on that one! Agree with the sentiment though. Really ought to do something about lowering the duty on derv so that hauliers can be more competitive and keep down shop prices.
With little sign of any cuts in bloated government I suppose the money has to come from somewhere and, sadly, we're as good a source as any.
Brian
Michael Ashcroft. March 18, 2009
Fuel duty WILL rise on April 1st, again in the pre-budget report and yet again in December when VAT go's back up, so that's 3 times (and counting) this year.
Oh I'd better be careful when it rises in December it won't be fuel duty it will just be because of increased VAT so that will be o.k then?
2009 score:- Fuel duty 2 VAT 1. Motorist slaughtered.
It will be a tough fought match but fuel duty and VAT will play all their usual dirty budget delaying tricks and will retain their position at top of the league
despite all the protestations from their opponents.
The ref must be blind, perhaps Jeremy Clarkson will/has confirmed this already.
Steve M March 18, 2009
Hi,
On 16 July 2008, just days after hauliers had demonstrated against rising fuel prices and following questions from Birmingham Northfield MP Richard Burden, Prime Minister Gordon Brown told Parliament: "In recognition of the problems that people face with petrol, we are freezing petrol duty for a full year."
Exactly as reported by Adrian John Bell on 8 March in the last blog pages (No; 38)
And still people defend the PM and pretend he did not say what he said or mean what he meant. Its in black and white.
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