"Fuel Price Stabiliser"
Discussion
Anyone else really *not* like the sound of this?
I know the government talked about it before the election but IIRC the details seemed a bit vague.
My main concern is where they will decide to set the price, with current levels the way they are - the skeptic in me would assume they will think of a level 5-10p per litre lower than at present which is still unreasonably high, and they will then increase this "base price" in line with inflation every year. This would pave the way for them to charge a massive rate of tax to keep the price up *if* the oil price dips in the future, denying the public and haulage industry of the relief of a period of lower prices.
Coming up with a way for this "price stabiliser" to work would doubtless end up being an expensive task. I'm not expecting a tax cut in the current climate (though I think that 58.95p/L plus VAT is a frankly ridiculous level of tax - over £3 a gallon!) but surely a better solution would be for them to just freeze duty. The planned "1p rise" (actually inflation plus 1p) would seem like a very poor political idea with prices as they are at the moment.
Any thoughts?
I know the government talked about it before the election but IIRC the details seemed a bit vague.
My main concern is where they will decide to set the price, with current levels the way they are - the skeptic in me would assume they will think of a level 5-10p per litre lower than at present which is still unreasonably high, and they will then increase this "base price" in line with inflation every year. This would pave the way for them to charge a massive rate of tax to keep the price up *if* the oil price dips in the future, denying the public and haulage industry of the relief of a period of lower prices.
Coming up with a way for this "price stabiliser" to work would doubtless end up being an expensive task. I'm not expecting a tax cut in the current climate (though I think that 58.95p/L plus VAT is a frankly ridiculous level of tax - over £3 a gallon!) but surely a better solution would be for them to just freeze duty. The planned "1p rise" (actually inflation plus 1p) would seem like a very poor political idea with prices as they are at the moment.
Any thoughts?
holes in ties
to3m said:
Fixing the fuel price won't increase demand, so the money will presumably have to come from somewhere else. And I think I read somewhere that the public finances aren't in fantastic shape, making it an inauspicious time to be cutting income.
No but it might free up a bit of cash for most people. Then they might spend a bit more on the High Street.
The Fuel Stabilser won't happen, Cameron said this morning it wasn't in the Coaliton agreement..... SNP want to introduce a stabilser for scotland though.
The biggest grey area I can see it that Tories like to set a financial target for others to adhere too.... like Max housing benefit ceiling is to be £26000 for example but the Tories will refuse to set a ceiling for the maximum petrol/diesel price as they wallow in the increases in duty/vat more than the awful Labour lot.
History shows that all Tory governments since the 60's have forced more of us to use the roads, Beeching closed railway lines forcing more onto roads, Tebbitt told us to travel to look for work, Thatcher dereglated and cut bus subsidies.....so more on the roads.
The Spending review, upped the cost of rail travel which has just started to impact and the 20% cut in bus subsidy is happening too.....result MORE on the over congested roads...
So far the Government have upped the weekly duty recieved to the treasury from us the consumer from £1.6bn, when they came to government last May to the current £1.94bn, a healthy revenue increase per WEEK.
Putting that amount of revenue into context, this means that we could build 4 M6 Toll roads weekly.... SO why won't they have a ceiling/stabiliser for the fuel price....?..
So they can introduce Tax cuts and benefits for the richest of the UK in the Spring budget ....not for you and me......
The biggest grey area I can see it that Tories like to set a financial target for others to adhere too.... like Max housing benefit ceiling is to be £26000 for example but the Tories will refuse to set a ceiling for the maximum petrol/diesel price as they wallow in the increases in duty/vat more than the awful Labour lot.
History shows that all Tory governments since the 60's have forced more of us to use the roads, Beeching closed railway lines forcing more onto roads, Tebbitt told us to travel to look for work, Thatcher dereglated and cut bus subsidies.....so more on the roads.
The Spending review, upped the cost of rail travel which has just started to impact and the 20% cut in bus subsidy is happening too.....result MORE on the over congested roads...
So far the Government have upped the weekly duty recieved to the treasury from us the consumer from £1.6bn, when they came to government last May to the current £1.94bn, a healthy revenue increase per WEEK.
Putting that amount of revenue into context, this means that we could build 4 M6 Toll roads weekly.... SO why won't they have a ceiling/stabiliser for the fuel price....?..
So they can introduce Tax cuts and benefits for the richest of the UK in the Spring budget ....not for you and me......
Flanders. said:
to3m said:
Fixing the fuel price won't increase demand, so the money will presumably have to come from somewhere else. And I think I read somewhere that the public finances aren't in fantastic shape, making it an inauspicious time to be cutting income.
No but it might free up a bit of cash for most people. Then they might spend a bit more on the High Street.
Am I the only person who thinks raising fuel tax is completely self defeatist?
Surely the tax they raise will go back out to the gubberment services which need petrol money, to the benfits lot and retired lot who have to pay more for goods because it costs more to get the goods to the stores and probably lots of other things?
Surely the tax they raise will go back out to the gubberment services which need petrol money, to the benfits lot and retired lot who have to pay more for goods because it costs more to get the goods to the stores and probably lots of other things?
crankedup said:
Road transport fuel is now at the tipping point of diminishing returns of tax into Government coffers as people will consider carefully use of the car journey in mind, apparently.
Yep.It is getting to the stage where many people I know are not using their cars (read, going out at all) unless necessary i.e. visiting friends etc is lower on the list of priorities.
Jasandjules said:
crankedup said:
Road transport fuel is now at the tipping point of diminishing returns of tax into Government coffers as people will consider carefully use of the car journey in mind, apparently.
Yep.It is getting to the stage where many people I know are not using their cars (read, going out at all) unless necessary i.e. visiting friends etc is lower on the list of priorities.
http://homepage.ntlworld.com/mike.gough/A_Fair_Fue... - a Tory document from 2008...... nuff said, now they claim it will be difficult to implement.....or between the lines...were happy to rake an extra £2bn from road users in 2010..
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