Shadow chancellor
Ed Balls is reported in today's Sunday Times to have "challenged
the UK coalition government to step in to curb soaring petrol
prices in the UK amid fears that the cost of fuel could hit
£1.40 a litre". He is calling for the removal of
the recent 2.5% VAT rise, a move that would save about 3p a
litre at the pump. More
Last night, with the George Osborne (the UK Chancellor of the
Exchequer) under intense pressure to act, the UK Treasury acknowledged
the growing burden on motorists saying "ministers were
actively examining every option".
In April 2011 a further 1p a litre rise in fuel duty is planned
to come in as part of previous Budget announcements. George
Osborne will say he can't make these sorts of decision outside
the Budget - his next budget is due on Wednesday 23rd March
2011. He has been considering a fuel duty stabiliser whereby
fuel duty is cut when prices are high (due to increases driven
by higher crude oil costs) and raised when they fall. But the
complication of the mechanism needed to implement the stabiliser
is seen as "too complicated" and so the measure is
unlikely to be happen. |
Increasing
concern over rising motor fuel costs
Another fuel duty rise and a 2.5% VAT increase in early
January 2011 following the increases announced in the Emergency
Budget in June 2010, caused widespread concern amongst UK motorists.
Those increases sent motor fuel prices soaring at the pump and
now the recent turmoil in the crude oil producing states in
North Africa and in the Gulf have seen crude oil prices rise
to over US$100 a barrel. The disruption to crude oil production
in Libya and to their refineries has created more pressure on
crude oil and refined products, only slightly eased by increased
production from Saudi Arabia as the traditional swing producer
with around 11% to 12% of World production.
The Treasury documentation with the Emergency Budget in June
2010 mentioned two measures - a possible "Fair Fuel Stabiliser"
and a "fuel discount in remote rural areas", suggesting
that a pilot scheme is possible in Scotland.
Where can I see previous reports on the V8 website?
Rising
fuel taxes will send motor fuel prices to new highs.
221110
More
Budget review in June 2011. More
Budget Report - March 2010. More
Where can I get further information?
HM Treasury Budget June 2010 webpage. More
Extracts from HM Treasury documents. More
Budget June 2010 documents. More
Next Budget report on the V8 website
As usual we will have a report on the statement within an hour
or so of the Chancellor sitting down in the House of Commons
The Budget announcement is due to be on Wednesday 23rd March
2011.
| See
our Budget 2011 report
22.3.11. More |
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