The Chancellor must scrap the 2p fuel duty rise
2945 Comments | Add Comment | Blog entry posted 10th March, 2008
On Wednesday the Chancellor Alistair Darling will unveil the 2008 budget, and with it, a series of tax hikes on motoring. The government is still planning to press ahead with a 2p increase in fuel duty, to take effect from April 1st 2008, despite increasing fears over the state of the economy and new record oil prices being set each week. Oil prices reached a record $107.44 on Monday morning.
Figures from PetrolPrices.com show that the price of unleaded has shot up 18.1p per litre in the last year. At the beginning of March 2007 a litre of unleaded cost 88p. Both unleaded and diesel are at record highs – unleaded is now 106.1p per litre and diesel is 112.5p.
Despite the impact record prices are having on motorists, on the haulage industry and on inflation, it’s likely believe that the Chancellor will push through the price rise anyway. Many believe he is scared of being labelled as a hypocrite – this year’s budget has been billed as the ‘Green Budget’, and cutting fuel duty would not be in line with the overall message the government wants to convey.
Other methods of taxing motorists are expected to be announced too, for example taxing gas guzzling cars out of existence, by adding a ‘showroom’ tax of £2000 to the most heavily polluting cars, and colour coding tax disks by carbon emissions. This would make it easier for local councils to identify and penalise high polluters, possibly by charging 4×4 owners more for parking.
But why does the Chancellor need this extra revenue? Rising fuel prices caused by oil price rises have been bad for motorists, but good for the government. Compared to the Pre-Budget Report in October, figures suggest that the Treasury has received an extra £1.2 billion in revenue because of the tax on North Sea oil. This means Mr Darling could easily afford to scrap the 2p increase, which estimates suggest would cost £1 billion.
If the Chancellor doesn’t scrap the increase, and the conditions in the economy and the oil market continue, pump prices will hit £1.50 a litre this year – the equivalent to well over £6 a gallon. This would have a catastrophic effect on motorists, the haulage industry, and therefore inflation and the country as a whole.
Motorists across the UK are now having to adjust their driving habits because of the price rises – many now take fewer non-essential trips, have switched to smaller or more efficient cars or drive slower to get the most out of their tank. Green lobbyists see these changes as evidence that hitting motorists financially is the only way to curb carbon emissions, but it’s possible that going ahead with the 2p fuel duty rise and continuing to target motorists could cost Labour much more than a few pennies at the next election.
Should the 2p rise be scrapped? Have you changed your driving habits as a result of fuel prices? Are green taxes stealth tax or will they help us cut our carbon emissions?
Replies to The Chancellor must scrap the 2p fuel duty rise
Edd Holler March 15, 2011
Everybody goes on about the government scrapping the rise in fuel duty in the budget.I think they should cut the present rate of fuel duty by at least 50%.Daylight robbery is what i call what they get away with.The money you earn is taxed its taxed again when you spend it.Its time the british public made a stand off.Cripple the whole of UK until the government see sense.
Bogland September 28, 2008
Its a good while since I have posted here but the events in the world financial markets and the melt down of free market capitalism as we all know it took me back to Peak oils warnings that I remember reading earlier this year. I have to say I thought that maybe they were a bit alarmist but the world is lurching from one crisis to the next and if anything things could soon be a whole lot worse. It all makes fuel prices look insignificant looking at events unfolding now.
Colin Wilde July 3, 2008
Watch the PR and spin they'll try and give when they drop this impending extra 2p (surely they'll have to?) they'll tell us how they've listened and understand!
My gripe with this is that the additional VAT we're paying from this time last year has already paid this 2p many times over, so what are they giving back, more tax is being paid, don't let them fool us. Fuel Tax has gone up and the VAT amount has gone up. In short this is clearly a 'LOSE LOSE' situation.
Christopher Simpson June 4, 2008
I agree that something must be done to counter climate change and reduce road congestion, traffic accidents and social exclusion. What I hate is the goverment taxing us to death and no improvements in sustainable transport being done. With all that cash, the following must be done:
1) lower the cost of rail / bus tickets
2) Every large city to have a good tram system
3) Beeching in reverse policy. I would not mind high taxes if I saw railway lines being re-opened, especially those most needed trunk routes eg Woodhead,Waverley , Skipton-Colne, Hull-Market Weighton- York and those with a regeneration power Spen Valley, Wealden link, Penrith-Keswick
4) Freight being moved onto Rails/ Canals. Instead of hundreds of lorry miles, trunks visit their local goods yards to collect freight.
These would help
Robert Thornley June 4, 2008
what a country we live in, i was once proud to be british not anymore im sick and tired of going to work, only to have more and more of my wages taken off me in taxes now the government want to put 2p on petrol.
when are we as a nation going to stand up for ourselves and say enough is enough? it wont be long before myself and probably "YOU" will be unemployed. then where will the government get the money to give themselves another pay rise (above inflation of course),
Donna Hartley May 26, 2008
Why do we ALL forget that we are the Goverments employers! We pay their wages, we elect, therfore they work for us.
Its the same when the NHS is discussed, it's NOT FREE for us who work, all of us who work pay into it! LETS ALL WAKE UP....
I am the HR manager of a Transport company and I am absolutley petrified as to what may happen to it if something is not done now! We are at crisis point, any profit we may have made has been wiped out with the fuel surcharges. The Goverment MUST act now. The haulage industry will collapse if it doesn't.
We have seen numerous companies go bust recently and the affect it is having on the employers and employees health is nothing short of disgusting.
I drive a car too so I scream from that corner also.
The French wouldn't stand for it and we shouldn't...
Robert Wilds May 19, 2008
hi, just returned from spain, road fuel is approximately the same price in euros as it is here in sterling, and without wanting to state the obvious I think the chancelor is taking enough already in duty and should actually reduce it.
robert
Michail Saunders May 12, 2008
I HAVE JUST HAD TO SELL UP BECAUSE OF HIGH FUEL PRICES, I USED TO TRANSPORT FRUIT AND VEG TO MARKET BUT MY CUSTOMERS WILL NOT PAY HIGHER COSTS, I EMPLOY 3 DRIVERS WHO HAVE NOW LOST THERE JOBS!!!!! HOW MANY MORE ARE GOING TO GO UNDER BECAUSE OF THIS FUEL PRICE RISE, MY TRANSPORT BUISINESS IS NOT WORTH MUCH NOW AND I AM FINDING IT HARD TO GET A BUYER, WHO THE HELL IS GOING TO HELP ME NOW???? MR BROWN??? I DONT THINK SO. LATEST AT MY GARAGE £1.31.9 A LITRE FOR DIESEL,GONE UP 22P A LITRE IN 2 WEEKS(THATS RIGHT 22P A LITRE NOT GALLON)!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
David Williams May 5, 2008
This has got to be the most money grabbing regime ever to get into power! How they can begin to justify their new road tax system I will Never know! So, in future, you will pay up to £450 a year to be allowed to take your environmentally unfriendly motor onto a public highway regardless of how much it is used ( I do 6000 miles a year) but lower emission vehicles can buzz around for next to nothing and clock up 20000 miles in a year! Which of us is the cause of more pollution? I say scrap the whole road tax system and put it onto fuel prices ( within a reasonable amount) and that way everyone pays a fair price for their amount of pollution and road use - EVERYONE including the road tax dodgers who I'm sure are going to get even greater in their numbers in future.
Philip Monument May 4, 2008
No matter how much we moan and complain the government will never listen to us , as long as they can comfortably afford to live they have not a care in the world for us - THE PEOPLE THAT PAY THEIR WAGES , so we need to take a leaf from the french or indeed anyother country and BRING THIS COUNTRY TO ITS KNEES, WE ALL NEED TO UNITE AND STRIKE IF WE DONT WORK THE GOVERNMENT DONT GET PAID SIMPLE AS THAT , BLOCK UP ALL THE ROADS , SHUT EVERYTHING DOWN AND TAKE AWAY THEIR PLEASURES , we need to show this government who is in charge, not stand back and be pushed around .
Mac May 3, 2008
We can only hope that due to the excellent results at the local elections that Gordon Brown and associates (believe me we have a property sales called this, maybe it is them branching out to keep themselves in jobs) they will start to consider the damage that they have caused to the economy and will lower the price of fuel, but don't hold your breath. The labour leader of Sunderland council was voted out, but I don't know what the rest of the results were. In case you have not guessed, yes I live in Sunderland.
Rocco De Lucca April 29, 2008
**************** 200% TAX on Fuel *******************
Now here is a different slant on Fuel duty.
Why is not more hype put on the actual Tax Rate - Is this legal or legalised extortion ???
Household Fuel - 8%
Food - 8%
General items - 17.5%
***** FUEL - 200% ***** (approx)
C April 18, 2008
five years ago Petrol was 79.9p a litre now it's over £1, it's all tax, I'd like to see the mp's pay for there own petrol without claiming on there expensis.
Vincent Ludovico April 18, 2008
Vat should be cut on UK fuel forecourts. There is no alternative as yet to petrol and diesel. How come Portugal cuts it's VAT on fuel as oil prices rise?
There is no point saving the earth if it means makinf people poor. How is it so many Chinese are taking to cars rather than pushbikes?
Labour Conned April 9, 2008
Motorists are voters too, let's not forget that when we vote in the May local elections, this will be our chance for us all to give Broon a bloody nose and give him a sample of what he's going to get when we get the general election.
Mark Edwards April 7, 2008
One way or another the oil is running out, low emmision cars still burn the stuff. I think that the general public would accept the high taxation if they could see that the money was being spent directly on developing public transport, new renewable sources of energy, new technology to use the new energy sources etc. Instead we keep seeing our hard earned quickly stolen, tax money spent chasing round the globe trying to police it. Surely it's time charity started at home, we are just about to enter a seriously hard economic period of time.
John Faulkner April 4, 2008
The government claws back more tax with every price hike emposed by OPEC and so over the last year alone there is much more than 2p per ltr going into the bottomless pit.As any fuel price rise contributes to raising the price of essential goods such as food, then they ought to be LOWERING the tax now and not starving out the the very people who who work hard to maintain their never ending and ever growing EXPENSES.
Andy April 1, 2008
I run a hotel and the trouble is - all our costs go up - fuel, food, alcohol, heating etc but no one wants to pay higher prices for the hotel room. Add the VAT into the mix and any smaller hotels and guests houses simply won't be able to survive.
Mark March 31, 2008
ladies and gentlement
forget about voting out this poor shoudy government.
as you will probably vote another in its place lets not forget what the tory did to the working man too back in the 80s/90s.
i we still had the coal mine`s we would NOT have a energy crisis in the UK, if the torys nationaised and controlled the North Sea oil reserves instead of biding them out to american oil copanies there would NOT be an energy crisis.
do you really think that Fuel crisis and oil prices will return to normal if you vote a new government in? no they won`t each Government that we had have been useless but we still vote one of the same two in.
what i suggest is get on you feet off your arses stop watching bellenders and the other trash that is on the box and march ,fight for your belief.
we are all here reading this lets make a stance start by haveing a national go slow day on this Friday 4/04/08 then do it every Friday till they get the message
contact PeoplePower AT live DOT co DOT uk
for further Info
Richard Andrew Swannell March 30, 2008
encourage the motorist to change to diesel , traditionally much cheaper than petrol , then realise that you are losing revenue because of this price difference , then make diesel much more expensive . great plan . out of touch with the real world , or are they just thieves in suits ?
Simon James March 30, 2008
If you don't like it learn to walk, or use public transport. It is not a requirement to own a car. Good Luck to the Chancellor, rather him than the opposition.
Gavin Punter March 29, 2008
I am what would be classed as an undecided voter and to my mind we can't trust any of them but the numerous comments on these pages advocating voting this government out as soon as possible quite frankly amazes me.
The tories have pledged NOT to cut ANY taxes for at least the first 4 years of
a tory government and by then they'll have wasted any surplus they have on a new war or some new factual (though fictitious) reason why we should all subscribe to the global warming guilt trip.
A fuel duty regulator should be implemented to stabilize fuel prices and as for the rate of inflation being 2.5% why have all prices in shops increased well into double figure percentages since Christmas? I'll have whatever drugs they are on please.
Dave Clegg March 28, 2008
I am currently working in saudi arabia,Its a struggle to get three pounds worth of fuel in to the tank of my car,its so cheap.
When they increased the price by less than a penny,there was such an outcry.The king ordered a reduction in price .the best way to attack the fuel companies is to stop buying fuel from one oil company,say we all start with BP.
Patrick Loaring March 27, 2008
This Government has played fast & lose with increased taxation on fuel. They justify the increases on the basis that it will reduce consumption and help reduce CO2 emissions. They seem to miss the fact that most of our food is moved around the country on diesel fueled trucks and therefore the increased tax is adding to all our living costs even if we don't own a vehicle. The UK is now "enjoying" the highest fuel costs in Europe and this is eventually going to have an impact upon our productive competitiveness.
Catherine Punter March 27, 2008
The price of petrol/diesel will keep on rocketing simply to pay the family allowance of immigrants who claim to have several children back home in their country. YES they CAN claim for children not resident in this country and the money (ours) go's into their country's economy!!!
Ann.fryer@tillomed.co.uk March 27, 2008
So far to date what has happend petrol has gone up the 2p has been staggered for a few months in the clear hope we will have forgotten but does anyone ever read these comments and the peoples views does it get to this goverment, all I can see since this budget is everything going up & up my salary staying the same so those well off people that can afford to pay will continue to live well those that have been affected by the abolishion of the 10p tax banding will make those earing less than £15,000 a year worse off by about £2 or £3 and I do wages!!!!! so the least well paid will be worse off and those earning over will be better off, I will never vote for Labour again I am waiting for the May council elections hopefully that message will become clear...
Emma Back March 26, 2008
How can this government price the motorist of the road without offering a clean, safe, reliable, practical, competitive alternative. This is just highway robbery and should be legally challenged.
Summer Plait March 25, 2008
Why are we in Britain so consummed with oil prices? It affects almost everything we purchase as supplies to our everday living.
Lets think of alternatives to living a cleaner life, without the burdens/constraints which the govt, continually inflict upon us. Lets empower ourselves to look beyond our own understanding and realise that we can live and consume less, thus the govt, will not be n the driving seat of supply and demand!
Chris Burton March 25, 2008
I object to the comments made ealier about changing our lives to suit less oil consumption. If i didnt know any better id say you were from the goverment trying to ruin our comments like you have done our financial lives.
We live in a fast moving technological society now. We HAVE the technology to make 1 tank (52 litres 11.4 gallons) (astra size) last 2000miles! Yes 2000 miles.
But the oil companies will not release the technology because low and behold it wouldnt be so in demand anymore would it? and that means it wont cost as much so ultimately thats less profit.
We need another oliver cromwell to put the house of the privaliged back to the house of COMMONS.
Goodbye Labour, Goodbye Conservitive Hello somebody different for once.
Ron Iouk March 24, 2008
Does Guy Fawkes have any living relatives who would be willing to help the cause?
Bryan Stephenson March 23, 2008
The Chancellor could save almost £1 billion by bringing MP's expenses into line with current industry practices that are required by auditors. Why should we pay even more fuel tax to (effectively) keep MP's on their gravy train paid for by extremely questionable (many would say corrupt) personal expense practices.
Those of us who do not have the option of public transport, which in any case is a shambles, are steadily running into financial difficulties. We must all vote with our feet and put Labour into oblivion at thje next election
Samantha Blunt March 23, 2008
Its all well and good trying to look after the planet and reduce emmissions but making it difficult for people to earn a livng by increasing their travel costs is not the way to solve the issue. Its a cheap excuse to line the governments coffers; yet again! I'd love to be able to afford a new 'green' car but its just not a possibility, that is why so many people are driving cars with higher emissions. Why penalise the people that havent got a choice in what they drive?
Stephen Phillips March 22, 2008
why dont we as a country stand up to this bully boy government, before they crush the working class into the floor. its us that keep this country going, yet its us they keep hammering with their stealth taxes etc etc. were spending billions on a war we cant win, with money we havent got. anybody from eastern europe can come and live here, and claim money for everything they want. its ridiculous, and i think our fore fathers would turn in their graves if they could see the state this country is in now. and if this government award people with greener cars,eg diesels, lower annual tax. then why then are those same cleaner burning diesels hit so hard at the pumps?????????????
Tony Rose March 22, 2008
Why does everybody seem surprised at the price increases on fuel? Successive governments have treated the motorist with contempt and raised fuel prices to pay for their inability to control the nation's finances. While we have a government that can spend BILLIONS bailing out Northern Rock, fighting an illegal war, and simultaneously allowing its MPs to claim thousands of pounds a year for furnishing a secong home, we can expect nothing better. Blair and Brown have shafted us for long enough. I am a pensioner who drives a Motability car. I cannot get the full use out of it a £5 per gallon. All together in the New Labour anthem "Things can only get better".
Labour Conned March 22, 2008
Mac' comments 2912.
You should put you'r post in the papers mate, that is one of the reasons we are the highest taxed in Europe, so that every Tom, Rick and Mohamed can come over and take advantage of the freebies on offer.
Thanks for you'r tip post 2913.
Brian
Mac March 21, 2008
In case anyone is having a problem entering thier comment's and they get an error message and the code disappears, which has happened to me several times. Highlight what you have written and then go to, EDIT, and click on COPY then go to a previous page, click on the comments box to insert your post again and then all you have to do is fill in your name and email address, it's just worked for me, apologies if you think it look's like I am trying to teach my granny how to suck eggs, but I've just thought of this and some people might not be up to this.
Mac March 21, 2008
We should have 3 referendum's,
1 Get us out of the E.U.
2 Get rid of thse migrant's and please don't tell me that we need them, it's the other way around, they need us. When the E.U. common market was first thought up it was to benefit us and our near nieghbours, supposedly to strenghten our economies, now they are letting all in sundry in and we are being inundated with not just the worker but his whole family including the grand parents and aunt's and uncle's and the social services are at breaking point, If we must have the so called workers then so be it but at least send the rest of the hangers on back. A nieghbour of my late mother had a car for sale, a knock came to thier door and it was a migrant worker and his mates, "yes we will give you your price for the car we'll be back this afternoon" an hour later they turned up with a cheque for the price of the car, "I'm not taking a cheque said my mam's nieghbour, "it's OK if you ring the social services they will OK it for you" sure enough when the people rang the number the social services said ,"it's alright , it's so that they can get around to look for work", would you or I have been given a cheque for 2 grand so that we could look for work, not on your nellie, and I would guess that the S.S. then had to fork out for the road tax and insurance as well.
3 A referendum to ask the voters should we hold a general election immiediatly, this gov doesn't believe in referendum's so dont hold your breath.
Siobhan Dickson March 21, 2008
I am a community nurse and have been so for six years. As we are NHS workers and don't count for anything, our petrol repayments have not been increased in that time. According to my colleagues, not for a long time before that either. Therefore, our fuel repayment is woefully inadequate. As I do approx 400 miles a month visiting patients in my car, I am almost paying the NHS for the honour!
Michelle March 21, 2008
I am sick of the price of petrol, its a joke how much we pay. If it keeps up soon i wont have a car on the road!!!!!!!
Some government
Mac Obermaier March 21, 2008
Having watched the gullibility of the general public for more years than I care to remember I am now disheartened enough to make a point. Wake up folks, your government is only doing what it usually does, extract the most it can from your pocket under any suitable guise. What's new? These price hikes arent anything to do with the environment, never were, never will be. They might be acceptable if they were. You are being taxed to the amount the government calculates they can get away with. This extra revenue apart from paying for gold plated pensions, will be doubtless be spent just as "effectively" as all other taxes. Think about it, the competency of any government can usually be measured by its tax increases, so smile, keep paying & get used to it, get rid of them or get out, its so simple.
Gordon Clack March 21, 2008
Why are we paying VAT not only on the fuel but also on the fuel tax - literally a TAX ON A TAX?
Why, if diesel is less expensive to produce than petrol is it more expensive at the pumps?
Why, if diesel produces less CO2, does the goverment penalise diesel users when it says it is trying to reduce CO2 and help the environment.
When is the AA to produce car-stickers saying: EVERY MOTORIST IS A VOTER
George Dunkley March 21, 2008
As Mr Ed Balls. Secretarty of School children. Allegedly said in parliament last week 'SO WHAT'. That sums up the contempt that this goverment as towards the Motorist
Kay March 21, 2008
Absolutely it should be scrapped....Fuel prices are so unbelievably hig halready that it's ctually making life difficult for me to GET to work. If I then have to leave work simply because I cannot afford to get there any more, I just end up with the dubious honour of having to try and get the state to help me, which in turn only increases costs for the government.
I know I'm not the only one in this predicament, but it seems that our government has absolutely no understanding of the fact that every action has consequences. Yet again, they fail to take in to account the big picture. Seems to be a common theme in just about everything they do.
If there's a requirement for more cash, here's a few quick wins. Cut out expenses accounts for MPs and oooh, here's a fun one - quit sending our soldiers off to fight other people's wars? You never know, that might spare the country a couple of quid to fix up the roads...
R West March 21, 2008
This is a joke!!! How much more do they want to boost the price of petrol up to!!! Petrol and speed cameras are a joke these guys are taking everything we have and then they wonder why there are so many people signing on down the job centre and why so many people are driving without insurance tax mot!!!
Alan Hurry March 20, 2008
I'm against the 2p petrol rise because I don't earn enough and have to travel to work in my car like many other people. I feel, if petrol prices rise too much I shall have to rethink about working, meaning a possibility of giving up work and living off the state and that won't do the government any good at all if everyone decided to do just that.
All living expenses are rising and my pay increase is nil although my wife got a 1% pay increase which does not cover all the increases the government is demanding.
So please don't put the petrol prises up because we don't want to be joining the dole queue.
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