Record fuel prices spur hauliers and MPs to revolt on fuel and road taxes
Thu 29 May 2008
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As crude oil prices reached record highs of over $130 a barrel, lorry drivers mounted a protest calling on the Government to scrap planned fuel taxes while back-bench MPs urged a re-think on planned increases in carbon-based road taxes.
Over 40 MPs have signed a Commons motion asking the Chancellor to reconsider the impacts of the planned VED (road tax) escalator which was intended to send a financial signal to car buyers to choose lower carbon models. The policy is criticised by MPs on the grounds that it is retrospective and therefore "unfair" to people who have already bought their cars. The rebel MPs - mostly Labour - say they fear a public backlash similar to the response which caused the Government's policy change over the removal of the 10p tax band.
Meanwhile, hundreds of lorry drivers protested in London and a two-mile line of lorries travelled very slowly along the M4 towards Cardiff. The drivers object to the planned 2p fuel tax rise, following steep rises in the price of diesel which are the result of crude price increases.
Environmental campaigners are, however, urging the Government to press ahead with the fuel duty increase, warning against allowing the economic downturn to undermine its efforts to tackle climate change.
The LibDems Transport Spokesman, Norman Baker, said that scrapping the fuel duty increase would "send the wrong message". He added: "The reality is that the reason we have a massive increase in petrol prices is due to the international market and the price of oil. The Government should be pressing the case for moving away from an oil-based economy."
The Government has hinted that it is reconsidering both the fuel and road tax policies.
Despite the rapid increase in the cost of fuel, the real overall cost of motoring has actually fallen since 2005 according to figures from the Office of National Statistics. A fall in the cost of buying cars and in related costs has more than compensated for the increase in fuel prices. (For the full story, follow related news link.)
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