18.03.09 Duty rise set to bring fuel tax to 71% in 2 weeks
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.








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I can not believe that the Chancelor will go through with it at a time like this.
I suppose they just want to get back what they have paid out saving the greedy bankers. Let's hope he changes his mind.
As the governemt is clearly lying to us yet again, it is the everyday folk that have to suffer for it. We have already seen the price of oil dropping yet the fuel providers have been gradually increasing their prices. Brown should be hammering them, not us!! Bring on the next election!!
It is indicative of this government to say one thing then quietly change things or slip things through on the nod. At a time when many are already feeling very constrained , particularly those of us who are pensioners and have lost a large amount of our income from our savings, this is just another blow as it will not only affect our travelling costs, but will filter through to food prices which have already risen substantially this last year.
Unfortunately with the state of the country currently, the Government needs every penny it can raise in taxes.
Just a thought - managers who can get 50% of their decisiions right are considered fairly good, so Gordon must be consider good as he got 50% right when he said no more Boom and Bust.