Chancellor Needs To Take Action
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17 Mar 2011
A few weeks ago I mentioned that many concerned Rother Valley residents have contacted me about the increasing cost of fuel. Ahead of next week’s Budget, I would like to have seen the Chancellor George Osborne reverse the Government’s VAT rise on fuel.
The AA’s latest fuel price report shows that across Yorkshire and the Humber the average cost of a litre of unleaded petrol in February was 127.8 pence – up 6.6 pence compared to December before the VAT rise. The current instability in the Middle East and North Africa is also driving up oil prices around the world which means the price of petrol at the pump is continuing to rise.
The hike in VAT to 20 per cent in January has added nearly 3 pence to the price of a litre of petrol and will raise £700 million for the Treasury, according to figures from the independent House of Commons Library. Reversing the VAT rise could be paid for with the extra £800 million the Treasury is receiving from the bank levy.
Whatever he chooses to do next week I hope that the Chancellor will take action on fuel prices to ease the pressure on families facing a squeeze on their income.