Fuel duty rose yesterday by 0.76p a litre and VAT will climb to 20 per cent on Tuesday. Sunday January 2,2011 BRITAIN’S fragile economic recovery is under threat from a “perfect storm” of rising oil prices and increases in fuel duty which will see costs soar over the next three years. David Cameron was last night urged to abandon the “disastrous” tax increases in the pipeline, which could add another 4p a litre to petrol prices in April, on top of this week’s 3.5p rise. It is feared cash-strapped hauliers and petrol stations could go to the wall and many families will be unable to afford to run their cars. The Freight Transport Associ ation led the criticism last night, saying the tax rises could hinder Britain’s ability to trade its way out of the recession. Chief economist Simon Chapman said: “Diesel is not an optional extra for industry. It is essential to keep shops stocked and businesses supplied with materials. “For the UK to trade its way out of recession its supply chains need to be cost competitive and its roads must provide reliable routes to market. Neither is achieved by a tax base spiralling well above inflation.” Brian Madderson, chairman of the Retail Motor Industry Federation, who has appealed to the Prime Minister to scrap this year’s planned fuel duty rises, said: “It is way too much tax they are taking. I am really concerned that Government is abusing the motorist and small businesses as well.” Last night the Association of British Drivers urged motorists to boycott out-of-town shopping centres and multi-screen cinema complexes next weekend in protest at rising fuel costs. East Midlands regional coordinator Keith Peat said: “Simply by not doing something that we do daily we can make a point. Can you imagine up and down the country retail car parks being empty?” A fuel duty rise of 1p a litre is planned for each April between 2011 and 2014. Once inflation is factored in, the rise this April could be 4p, the Retail Motor Industry Federation said. Fuel duty rose yesterday by 0.76p a litre and VAT will climb to 20 per cent on Tuesday. This week’s double tax whammy will trigger record prices of 128.9p a litre for unleaded petrol on average and 132.9p for diesel. Some forecourts are charging much more. The AA estimates the latest tax increases will add more than £34 to the monthly fuel costs of a two-car family. Households are already under pressure from higher prices for food and other goods and services. Mr Madderson said April’s duty rise, coming at a time when crude oil prices are climbing to nearly $100 a barrel, would create a “perfect storm” for motorists. He added: “I’ve not had a reply from the Prime Minister to the personal appeal I made in December. The price of Brent crude oil is over $90 a barrel and the City believes it could hit $100. “After the 0.76p increase yesterday, there’s another rise in April. We have said to the Prime Minister that he should at least put a halt to this year’s rises to assess where oil pricing is going. Give us a respite from this relentless increase in taxation.” Professor Stephen Glaister, director of the RAC Foundation, said: “Given that each penny increase in fuel duty raises about an extra £500million for the Exchequer, it is easy to see why the Chancellor is tempted to raise rates. “But if the nation’s 34million motorists are pushed too far they will drive less and the Treasury could actually see their tax take fall.” Hauliers estimate the latest rise will cost the freight industry £95million, threatening jobs and the viability of many firms.UK NEWS
PETROL RISES WILL RUIN UK
By Tracey Boles and Tony Whitfield
Read more: http://www.express.co.uk/posts/view/220621/Petrol-rises-will-ruin-UKPetrol-rises-will-ruin-UK#ixzz19rarNrCU
Sunday, 2 January 2011
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