Fuel Tax increase to be scrapped?

16 November 2011

fuel gaugeEveryone is short of cash in January, so what better way to please the populace than to sting them with tax increases. They did it last year, with the increase in VAT to 20%, and this January 1st the Government are still on schedule to increase fuel duty by 3p (plus VAT) that will mean an extra £1.50 cost to fill up an average car. The Chancellor is also planning a further inflation-driven 5p rise in August 2012.

However, not all of the ruling party are happy with the current plan, and a motion was signed yesterday by more than 100 MPs, including 83 Conservatives (out of 116) and five Lib Dems.

The renegade MPs, led by Conservative Robert Halfon, MP for Harlow, not only want the  increases in fuel duty to be scrapped but also want more help for people in the rural communities. Mr Halfon described fuel tax as an "issue of social justice… in rural communities which are being destroyed by fuel taxes." The point being, of course, that city dwellers can probably walk to a shop and buy bread, milk and toilet paper, but that country folk have to drive miles to the nearest bog roll emporium or else they end up stuck on the toilet forever.

The debate has also turned into a rich versus poor debacle, although some might say you could argue that more rich people live in the country than in inner cities. “My argument is that we should cut taxes for millions of people across the country rather than for millionaires,” Mr Halfon said last night. This view point was backed up in various reports showing unequivocal evidence that the poor pay out more of their income in fuel duty than the rich. It’s like the rich just have more money to start with.

Quentin Willson, the TV presenter and spokesman for FairFuelUK, said: "Only someone on mind-altering medication would suggest piling yet more financial pressure on an economy that's already crumbling to the touch.

"Fuel duty in the UK has become a trojan horse that's corroding the economy from within. We need a cut, not another rise."

While not binding on the Government, this strong backbench revolt could cause Ministers, and specifically the Chancellor George Osborne, to stop and think whether the increase is the best way to welcome in 2012. Given that the Treasury are claiming that to scrap it would cost £1.5billion, and there is no Budget due between now and January, a climb down may be unlikely, but we can only cross our petrol tanks, wait and see.

TOPICS:   Government   Motoring


  • Milky
    If the government simply stopped tooling around where illegal immigration is concerned we could save a fortune by simply not having to run & rebuild (after they've been set alight by the twats inside). About time this government & those following realized we are a densely populated island with limits as to movement (roads are buggered), food & fuel growth, ploughing up tracts of land for poor quality badly insulated housing. It's not about being unfair to those outside wanting in , its about making sure it the crap happening inside gets better not worse due to a crowded import reliant island. Look after the current crop of the mixed population (better than now), stop sending out stupid amounts of tax for charidee to poor countries & make it better over here. I anticipate the fuel tax would be similar to the amount of EXTRA charidee aid to other countries the government wants to give away, ..well we can all piss a bit harder can't we .!? No, & we shouldn't have to. For those of us in the countryside it's becoming uneconomical to drive to work, this will screw us further.
  • tiderium
    Interesting point raised on tv last night by someone, cut fuel duty by 3p instead of adding 3p and the people who are not using the car will start to use it again therefore putting more money onto the treasury. but the robbing gits cant see it that way. and if they would only stop handing out billions to overseas governments that are more corrupt and messed up than ours then we wouldn't be in such a pickle in the first place. the government always say they have no money yet they can hand billions to foreign aid at the drop of a hat, would those foreign governments pay it back? course not. does it help the starving in those countries? course not. it buys weapons. and its all paid for from fuel duty.
  • Delenn
    I find this whole debate rather depressing. Freezing duty is not going to get people using their car. Even a 3p drop will not do much. Try 20p or maybe even greater. The amount of tax they collect will increase if they were to do a radical cut in duty. Anything small will have no effect either way.
  • Alexis
    Yes, last time I looked, if a business puts up prices and sales and profits fall, the price hike was a mistake.
  • David
    Gosh Mikey, it must be depressing living on Daily Mail Island. Population density on the UK is just 660 people per square mile. That's less than our neighbours in Belgium and the Netherlands - and roughly the same as Germany. Across the whole planet, population density is 138 people per square mile - and that includes vast tracts of deserts, mountains, forests and other uninhabitable places. So there's plenty of room here in the UK. Our cities have loads of space for building good, low-cost houses - there's no need to build on green-belt land. The UK government will be spending £3.2bn on international aid this year. That's to help people in places where they have no food or access to clean water. So times are tough here, but they're not that tough. As a civilised society we can't turn our back on the promises we made in 2000 about trying to eliminate poverty in the third world. And that's *real* poverty. not "I-can't-afford-a-Playstation-for-Christmas" poverty.
  • OFI
    I give up looking at the petrol pump when I fill up these days. The price just keeps rising and I can't drive any less, I need to buy fuel. I live in a rural area with an unusable public transport system for those that need to get to work. To top it off, between the South of England and here in rural Wales I have seen up to a 16p per litre difference in unleaded fuel prices in recent weeks (on average it's 6-7p/litre more here)
  • klingelton
    fuel tax due to rise 7p over the next 6 months. welcome to another recession and MORE businesses going to the wall.
  • Milky
    @David Fuck yourself sideways it's not daily mail whatsoever, it is about a burgeoning population on an island! ..an island (that's surrounded by sea, also Wales & Scotland). If you look at how much land is lost & will be given up to the sea, plus the fact that areas of the country are national parks, rendered uninhabitable due to close proximity to all the shit coming out of London, Tipping areas, Nuclear power stations etc, land required to Frigging well grow foodstuffs on, also to maintain an eco system, clean air, stick wind turbines up far enough away from wankers like you to moan about, then you should realize we need to plan to a maximum number of what a country can realistically support without placing additional burdens on the infrastructure. I do understand what the 3rd world is my parents lived & worked in Africa for many years, seen the rise & the fall, & the poor get poorer. My father was actually imprisoned for helping the population around which he worked because that wasn't the done thing to treat coloureds as equals, his company used to have to smuggle him back into, we were threatened & harassed & at risk of car bombs for many years as a result. Otherwise it's like trying to cram a double deckers worth of passengers in a fricking mini. £3.2 BILLION! ..great we, as a country only finished paying off our WW" debt a few years ago, this is needed here & now. The 3rd world, pisses & shits in it's own clean water, Haiti is sueing because apparantly we've made folk die from nasty diseases brought in "allegedly" by internatrionally funded (us & others relief aid team) nothing to do with the country being a shithole before it was unfortunately racked with the misery of earthquakes making a bad situation worse, & yes they'll probably get some more money for that in damages, which will go into another despots hands, which alot of aid does. If WE can get nearer to stabilising our country amongst whats happening globally then we will be in a better position to help properly, why not spend some of the wasted cash that "go's astray" on equipment designed, & built over here so folks fell it's not so much pulling teeth & pissing it down a black hole (calcutta or otherwise) . Lets stop giving money to folk who then spend it on NUCLEAR ARMS, or plead poverty & spend it on shit like that! ..Nothing to do with daily mail, more to do with spending well & getting value for money whilst improving life long term, rather than an expensive plaster short term. Tax increases hurt here & now, actually adding to the burden elsewhere. You pious fucker!
  • Zeddy
    So Milky, I take it you won't be donating to Comic Relief when it comes around?
  • Nick T.
    @ Milky With Children In Need coming up, I propose that you should personally assess every child who may receive charity, to check they're not black, or foreign, or from poor families, or live in council houses in the north. I mean, where would it all end?
  • Major t.
    No point in dropping the fuel tax by 3p unless the government is prepared to force petrol companies to drop their prices. Otherwise they would just keep prices the same and pocket the extra themselves.
  • tiderium
    erm mikey the petrol prices effect Scotland and Wales as well, England is not an island the united kindom is an island you gormless England centric twat. if you look at a map of the uk mikey you will see that england is not an island.
  • Samantha
    We have a rail network that's falling apart, and yet keeps piling on massive price hikes. And petrol is so expensive that no one can afford to drive anywhere, and getting anything delivered costs a fortune. Can't the government see that they are absolutely destroying our infrastructure. People can't get to work. The cost of commuting can be a couple of hours pay per day. Companies can't afford to transport goods and have to pass the cost onto the consumers. And no wonder the high street is dying if it's bloody £3.30 for a bus ticket. Email might be great and all, but without transporters we still need to get our stuff from A to B. Make it affordable and maybe unemployment would go down a little, business would improve a little, people would shop more, The whole country would run smoother. Gawd it's like trying to loose weight for a race by sawing off your legs.
  • kinnock
    I wish they would double the price at the pumps as there are too many vehicles on the roads.
  • Sicknote
    Does this even matter with the rate that other indirect taxes are rising?
  • Kevin
    If you don't have the increases then you need the money to come from somewhere else that is high volume. 23% VAT anyone? However bloody awful it is can't people realise that not doing something costs money, just as doing something costs money! You can't have everything without paying for it.
  • Petrol H.
    I think that they should increase the fuel by 5p per litre (+VAT). This will increase the overall fuel prices by around 6p a litre and then next year (or 6 months later) use this increased fuel price to justify another 5p increase as the duty rates go up with inflation. It's great isn't it - rate of inflation goes up with fuel prices as a factor....fuel duty rates go up in accordance with inflation. Genius!!!! I really enjoy being screwed over! It's great! Only downside is that getting that Duckhouse delivered will cost more. But at least House of Commons still have tax payer subsided beer to make up for it! Woohooo.

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