Budget 2020: Rishi Sunak reveals fuel duty freeze
Chancellor Rishi Sunak is said to be considering a 5p per litre hike on fuel duty charges to make a £20 a week Universal Credit increase permanent. However, Howard Cox, founder of FairFuelUK has attacked the proposals as he warned a fuel duty increase would raise “only a fraction” of the cost of a UC increase.
He claimed increasing the tax would be “political suicide” and would be seen to be “lashing out” at drivers.
Mr Cox said: “Hiking fuel tax is like putting an even bigger hole in a sinking ship.
“Five pence on duty raises only a fraction of the cost of the hike in UC.
“It is pure vindictiveness forced by an ill-informed green agenda, that the Treasury are lashing out at motorists.
We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
“Hitting the world’s already highest taxed drivers hard, and continuing with the HS2 white elephant will be political suicide.
“[It will] cost jobs, raise inflation, and hit ‘white van men’ and low-income families hardest.”
The Chancellor has apparently warned “drastic measures” could be needed to pay for the £6billion Universal Credit charges.
A senior Conservative MP told The Sun: “We have spent nearly £300billion so far in this pandemic to help support families through this crisis.
Car tax changes will see petrol and diesel owners more affected [INSIGHT]
Car tax changes is ‘bad news’ for petrol and diesel owners [COMMENT]
Car tax changes may see a daily charge for private vehicles [ANALYSIS]
“As a former Conservative PM once said, there is no magic money tree.”
Fuel Duty has been frozen at 57.95p per litre for almost a decade but there have been whispers of a possible increase for over a year.
But a report commissioned by FairFuel by the CEBR has claimed a rise in fuel duty would generate “very little revenue”.
The report claims motorists in the poorest 10 percent of the population spend twice as much on fur as other groups and could be hit hardest by any changes.
The CEBR report also claims fuel duty receipts will be less than a fifth of current levels by 2040 as more switch to electric vehicles.
They claim this makes a fuel duty rise unnecessary as it would contribute little long-term revenue.
Howard Cox added: “Time and time again the CEBR has shown the negative economic effects of increasing fuel duty.
“The 10 years freeze on fuel duty is bringing the UK rate of tax into line with the rest of Europe.
“It has reduced the CPI by 6.7 percent and raised household real incomes, especially those of neediest households, by £24billion.
“Why abandon it when taxing fuel hits the poor cruellest, with the North suffering most and London least?”
But Mr Sunak has previously confirmed repeated fuel duty freezes had cost the Treasury over £110billion.
Since the initial freeze in 2011, drivers have saved £1,200 each under the policy.
Last night, Downing Street said no decision had yet been made on plans for a Universal Credit increase.
Source: Read Full Article