FUEL TAX
"We don't
want three more of the bastards out there spreading poison"
John Major, off
the record briefing to Michael Brunson, ITN, 23 July 1993. The introduction of
VAT on Fuel.
Mr. Hague seriously expects us to believe that
Labour have given us this terrible fuel tax and calls for it to be reduced it
now. Do they really believe the people they wish to represent are so dense
that they have forgotten year after year of increases in fuel tax under the
Conservative government?
Here are the FACTS you decide.
- The price
of crude oil has risen from around ten dollars a barrel at the beginning
of last year to around 30 dollars today.
- Since the
March 1999 Budget, petrol prices have risen from 66p per litre to 85p per
litre: an increase of 19 pence. Only 1.89 pence of this increase was
caused by the 2000 Budget duty increase.
- The
Government pledged to stick to the previous government’s spending plans
for the first two years. In their third year, they scrapped the Tories’
fuel duty escalator. Those tough choices have delivered economic
stability, cut the deficit, put public finances back on track and
delivered over 900,000 extra jobs and more for public services like
schools, hospitals and transport.
- Pump
prices have risen too - because high crude oil and wholesale petrol prices
are being passed to the consumer by producers and oil companies.
- Budget
2000 delivered the lowest increase for 11 years: 1.89p per litre. It costs
average motorist (9,300 miles p/a) around £20 per year - less than £2 a
month.
- Under the
Tories, car tax increased by £45 between 1993 and 1996, under Labour’s
last two budgets £400 million has been cut off people’s vehicle tax
bills, and there has been a £55 cut in VED for the drivers of 4
million smaller cars of 1200cc or less.
- Since the
March 1999 Budget, petrol prices have risen from 66p per litre to 85p
per litre: an increase of 19 pence. Only 1.89 pence of this
increase was caused by the 2000 Budget duty
increase.
- The Fuel
Duty escalator was introduced by the last Tory government in 1993. Labour
scrapped the Fuel Duty Escalator which resulted in annual
real-terms increases in petrol prices and which was introduced by the
previous government. That means petrol prices are lower than they
would have been had the last government’s Fuel Duty Escalator not
been abolished.
- International
price of wholesale petrol has increased by over 70% since January
2000, because of uncertainties and shortages in the market.
- A 2 pence
cut in fuel duty would cost almost a billion pounds per year.
- In 1996,
shadow chief secretary David Heathcoat-Amory said: “The price of fuels
is not set by the Government.”
WilliamHague'sOffice@conservative-party.org.uk
williamhague@conservative-party.org.uk