Scrapping the fuel duty rise will hurt Britain economically

Aurora · Post by **Aurora** » 11 Mar 2011, 18:28

Caroline Lucas - The Guardian - 11/03/11

A small fuel duty increase means less consumption. The Green party wants to ease the strain by scrapping the VAT rise.

Article continues ...

RenewableCandy · Post by **RenewableCandy** » 11 Mar 2011, 20:32

Ah the Porter Hypothesis (or variation thereof).

Prono 007 · Post by **Prono 007** » 11 Mar 2011, 21:49

Thought this was an interesting way to look at it:

Some of the loudest voices are calling on the chancellor to scrap the planned fuel duty increase, due in April. But that essentially means using tax-payers' money to fix a problem that we cannot control – the long-term upward trend in oil prices.

Overall the Green's proposal sounds OK except I imagine the 8% p.a. rise would be very unpopular with many people. People love their cars so much it might be enough for them to vote for another party that would promise to scrap it.

the_lyniezian · Post by **the_lyniezian** » 11 Mar 2011, 22:07

My issue with this is that it ignores the possibility of people's behaviour changing anyway, with rising oil prices. Also that there are limits and we ought not to add to them.

Raising VAT might seem beneficial but at least it discourages un-necessary spending, and so far as I know only applies to some things, not certain essentials like food. As for petrol, people do sometimes need cars to get to work, or indeed sometimes anywhere... for now.

DominicJ · Post by **DominicJ** » 14 Mar 2011, 11:24

Some of the loudest voices are calling on the chancellor to scrap the planned fuel duty increase, due in April. But that essentially means using tax-payers' money to fix a problem that we cannot control – the long-term upward trend in oil prices.

The price of petrol is 50p a litre
The price of petrol tax is 80p a litre

Wheres sweet light crude come in exactly?