pslewis

This isn't a comment on the Budget, as such ... simply an observation, so not fodder for the general Budget thread IMO.

The 1p a Litre cut in Fuel Duty costs the UK £2 Billion ... don't know about you, but that is staggering, just 1p!

It got me thinking, we have seen the price of fuel increase by about 15p per Litre over the last 9 months. We are still driving, still moaning about it, still life goes on.

If the Tax take had gone up 15p a Litre, last June, the UK would have received £30 Billion over the course of a year.

So, I have a suggestion Mr Osbourne, hike Fuel Duty up 15p a Litre from 6pm tonight.

In one fell swoop, not cutting hospitals, schools and losing jobs, we would see the deficit reduced to £0 in 5 years. At which point drop the Tax back 15p a litre!

We all win, drivers will moan but come to accept it ... they have for 9 months!

I cannot see any downside to be brutally honest.

chocolate_o_brian

iTrader: (22)

I'm sure general motorists would simply moan but cough up the extra or car share more, but what about the professional drivers though? The companies, hauliers, other transport, etc. who maybe wouldn't be able to afford the 15p hike and go out of business.

For the above reason I think it wouldn't work.

Geezer

Apart from all the small businesses which would go out of business......

Geezer

Gear Head

iTrader: (2)

Inflation!

Adrian F

The VAT increase added 3p litre so this is just a PR exercise, plus as oil has risen he has got more in Tax as some of the Taxes on Petrol are % based so money taken inceases as price rises

P1Fanatic

Knowing how the govt works it would never return back down after the year is up. Look the suckers just accepted it.

ian7675

The economy is a very delicate and balanced thing. Major hikes in tax and duty can have severe knock on affects which could cause the economy to fall apart quickly so everything is done a small bit at a time.

bigsinky

you don't really live in our world, do you Pete. you haven't done for a long time now.

Adrian F

ian7675 if it was that predictable or controllable then we wouldn't be in this mess and all economists would be agreed on the solution.

stilover

Apart from Inflation rising even sharper, and everything costing more.

Brilliant. Why didn't Osborne think of that.

jonc

This is like the boiling frog anecdote. Rather than face huge public uproar with fuel strikes/blockages, I think the Government would instead prefer the motoring public be slowly boiled to death.

speedking

If the price was hiked then some hauliers would close, some journeys would not occur, people would use alternative means of transport, so the take would not be linearly proportional to the increase.

You could use the same argument for income tax. Why not increase to 30% and 50% for a few years until we pay off the debt? Nobody would notice

Jamz3k

My bills have increased massively over the past year yet my pay has been cut. I suggest u take your 15p increase and shove it where the sun don't shine.

richs2891

Would it not be easier and more economical (overall) to hike the price of cigs and booze ? OK as I dont smoke and I dont drink (that much) so I personally would see it as no great worry if got say a 10 pence increase on both. Yes people would moan but would pay it, they seem to be hooked anyway ! I cant see it having as much knock on effect to the overall econmy as hiking the price of petrol does to the overall economy. Might even get reduction in drink related incidents to the NHS / Police / local goverment etc, same goes for NHS with smoking related problems.

OK time to get slated for this but interested in views on this

Richard

Terminator X

iTrader: (7)

^^ c40m cars on the road though fella means small increases have a big effect. More so than taxing the (ever smaller nr of) smokers ...

TX.

Ginola

iTrader: (25)

Its all BS "oh the middle east the middle east" the UK can pump its own from the north sea and not have her oil prices directly linked to world barrel prices if the powers that be wanted, but the goverment likes squizing the motorist, at least its slightly less of a squize now than we would have seen under petes beloved labour party.
Still a shame none of the massive increase in revenue is directed back to repairing our decaying roads.

ian7675

I never said it was predictable or controllable at all. This mess wasn't a quick thing, it happened over a long period of time, a slow decline.

My point is if I cut your wages by 20% tomorrow then it could have a devastating effect on your life but if I reduced it by 5% over a few years then you could adapt and cope with it.

In the same way the economy can have a devastating effect if duties etc are massively cut or increased in one big hit.

kingofturds

iTrader: (1)

Apart from tesco and asda I am waiting for the garages down here to put petrol down 1p a litre. Do they have to wait for the next lorry load or something? They all seem quick enough to put it up when duty goes up.

DYK

Hunt him down and banish him.To even think about putting up the price of drink,its insane thinking... .couldn't give a **** about cigs though

pslewis

Some people, above, seem to forget that fuel has increased 15p a Litre since last June, anyway!!

And the world hasn't ended ... I say hike it another 15p and let's get it over with quickly!!

dpb

The tax take does seem to have reduced relatively over the years , if you stuck it up overnight peolple might complain !

chocolate_o_brian

iTrader: (22)

It hasn't ended but that sudden 15p per litre may tip many businesses over the edge. That's my point.

markjmd

iTrader: (11)

Staggering probably because it's not true, since the $2BN is the cost to govt revenue of both the 1p drop and the lost extra revenue from the cancelled fuel escalator, so nearer 5p a liter all in.


But I should think Pete really knew this all along.

ian7675

Don't forget that just because the government have reduced the duty by 1p, it doesn't mean it won't increase tomorrow.

markjmd

iTrader: (11)

Depends what you mean by 'tomorrow'. It will go up again in line with inflation, but not before January 2012.

If Labour had been in power though, it would have gone up yesterday and again at the end of the year by at least 1p above inflation.

Will

Yep. My friend runs a 8 wheeler tipper. He's really struggling, He's thinking of calling it day and looking for a job

pslewis

WRONG ... wouldn't have happened - for the very same reason it didn't happen this time around. You don't really believe that the Tories love you so didn't hike it - do you?

I note that the garages around me haven't moved their prices in any case - b4stards!! They are simply taking the pi55 now.

And, it may interest some that the Tax Take on fuel in 2001 was 80p or thereabouts - now it is just 60p or thereabouts!!

So, I still maintain we should pop it up 15p and get this thing sorted once and for all. We need all the money we can muster to bail out Portugal - because they choose not to take the medicine!

chocolate_o_brian

iTrader: (22)

What would you do about the businesses which would go bust if your 15p hike was introduced Pete? I asked the question politely earlier and hop you aren't avoiding answering it

Lee247

It's been in a few of the papers today, Osbourne is apparently, going to "watch these suppliers like a hawk", to make sure they implement the cut.
A few paragraphs on, he say he can't stop them if they don't do it.

Make your bloody mind up

Oh and loads have not reduced the price, greedy swines

Saying they can't afford the cut as they have already paid the duty. Bollox. It's never stopped them increasing the price, using old stock they got cheaper.