Thank you Chancellor, you obviously took note of my recent Blog. I recently blogged under the title of “Chancellor needs to do another U turn” and he has done just that. He has postponed the 3p per litre increase in fuel duty due to be implemented on 1st August this year. If he had carried on and implemented the increase it would have had a dreadful effect on every business and every private individual in this country.
At the moment it is postponed until January but it needs to be scrapped altogether or at least wait until the economy is well on the road to recovery. Everything in this country is affected by the cost of fuel because everything you have in your home, office or school once travelled on a truck. And a truck uses diesel to enable it to move and transport these goods so every penny more it costs to move an item of clothing or even a packet of cornflakes means you pay higher prices in the shops.
Chancellor please now go one small step further. Reduce the rate of duty on fuel, and do this quite dramatically. I know you need the money for the economy so increase the VAT on fuel accordingly so keeping the pump price roughly the same. You can then change the rules so only essential road users can reclaim the VAT on road fuel. This way it is not inflationary in fact it would be deflationary as the savings will end up getting passed down the line ultimately to the consumer whether the haulier likes it or not his customers will demand it. This way the cost of transport will reduce so helping the economy and the consumer and it will cost the treasury very little or nothing if the numbers are balanced properly. In fact every time the base cost of fuel rises the Chancellor will benefit from the VAT.
All the mechanisms and staff are in place to administer this so there would be no additional operational cost to the treasury. It would only be the numbers that change not the systems and procedures.
Go on Chancellor it’s a no brainer. At no cost to your coffers you can help grow the economy and give everybody in this country a bit more in their pocket.