Fuel Duty
 

From the pre-budget report -
VAT is to be cut from 17.5% to 15% for 13 months from next Monday but fuel duty will be raised to offset the cut in VAT.
The 2p/litre rise in fuel duty will go ahead on 1st December 2008.

The road transport industry greeted Chancellor Alistair Darling’s pre-budget statement on 24 November with complete and utter dismay.

Instead of offering a lifeline to the haulage industry, operators were left counting the cost of a near two pence per litre increase in the cost of diesel.

Whilst reducing VAT by 2.5%, Mr Darling made the decision to cancel this out in our tanks by increasing fuel to make up the difference.

The private motorist will notice no difference on the garage forecourt, but hauliers, who can reclaim the VAT on diesel, will see their costs rise.

The trade associations were quick to condemn the decision.

Trade associations and operators have been lining up to blast Gordon Brown for the rise in fuel duty announced in the Pre-Budget Report last week, supposedly compensating for the cut in VAT.The latest point to be raised is that this seems to have broken a promise made by the PM in July that fuel duty would be frozen.

As far as the Government is concerned, promises were meant to be broken. Give with one hand, take with the other.