22.04.09 Fuel tax up ANOTHER 2p in the Budget
The chancellor Alistair Darling has said that fuel tax will go up for a second time this year, to compensate for lower pump prices and a bigger drop in fuel consumption than expected.
Presenting the Budget 2009 Mr Darling said that fuel duty would rise by a further 2 pence per litre in September 2009, and then by 1p a litre above indexation each April for the next four years.
The full Budget report states:
"Fuel duties in 2008-09 were £0.4 billion below their 2008 Pre-Budget Report projection and were lower than in 2007-08. Since fuel duty is charged on a per litre basis, this reflects a reduction in the demand for fuel."
These newly announced duty rises are in addition to the 2 pence per litre rise that came into force on April 1, and on top of the 2p duty rise last December.
September's increase will bring the total duty on a litre of fuel to 56.19 pence per litre. The 'VAT holiday' is to last until the end of the year, so with 15% VAT on top this will take the total tax take on a litre of fuel to around 69 pence of the cost of an average litre of fuel.
Along with tax hikes on alcohol and cigarettes, the government hopes the fuel duty hike will bring in the Treasury an extra £6 billion.
A car scrappage scheme was also announced, giving drivers a £2000 cash incentive to trade in their old cars and buy new ones, although the details of this are yet to be confirmed.
The chancellor appears to have ignored the pleas of motorists, not to mention the countless letters sent to MPs asking for fuel tax to be frozen.
More than 130,000 people visited our campaign on fuel tax, It's Your Duty, and more than 53,000 people went on to visit WriteToThem.com from the campaign pages to write a letter to their MP about fuel tax.
Do you feel that the chancellor has ignored motorists in the Budget? How will another 2p duty hike affect you?








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Only 2 cheers for Mr Darling on this one: he should have put it up by far more.
It is important that Britain is seen to lead the world in green matters and a substantial increase would have had a major effect in stopping all those unnecessary car journeys (have you seen the number of people who drive into London). In addition, it would be a great way to raise extra funding and would also be slightly inflationary, vital in the days of deflation.
One other thing that surprised me is that he did not put up the duty for gas guzzlers (4x4s and super cars for example), an easy step to take and a good one for the reasons described above.
So Alistair, maybe better next time!
Ferdinand Green
Looks like the motorist cash cow is being hit again, but this time with a machine gun at a penny a hit.
Why he hasn't decided to freeze development for these useless wind farms deludes me... Throw a few nuclear stations up, yes, but wind and solar are too unpredictable.
Once again he hits out at the motorist in his Budget more like ruin the nation. I have to drive to work, I have no other way and I drive 50 miles round trip. Jobs the way they are at the moment are not easily come by so I would like to keep mine for now - BUT AT WHAT COST MR CHANCELLOR?
Can he think of no one else to get the money back off for bailing out incompitent Bankers!