Fuel duty freezes since 2010 have cost the Treasury over £46 billion in foregone tax revenue. This giveaway to motorists is now running at over £8 billion/year.
It's bad for the environment too, as it encourages car use over public transport use.
parliament.uk/written-questi…
It's bad for the environment too, as it encourages car use over public transport use.
parliament.uk/written-questi…
That's £46 billion of austerity cuts that could have been avoided if fuel duty had continued to rise each year.
NOTE: Only 1/3 of the poorest 10% of UK households own a car, so 2/3 don't benefit from the fuel freeze whereas all will have been affected by the austerity cuts.
NOTE: Only 1/3 of the poorest 10% of UK households own a car, so 2/3 don't benefit from the fuel freeze whereas all will have been affected by the austerity cuts.
But it's worse than that. Not only do poorer people own fewer cars, they also drive less far. Compare the average mileage of the 20% of people with the highest & lowest incomes. In other words, the rich benefit by far the most from the fuel tax freeze!
assets.publishing.service.gov.uk/government/upl…
assets.publishing.service.gov.uk/government/upl…
Even a fraction of that £46 billion invested in public transport, e.g. keeping rural bus routes open and train fares lower, would have made a huge difference for so many people on lower incomes.
Instead, it's helping Tarquin and Henrietta fuel their matching Land Rovers.
Instead, it's helping Tarquin and Henrietta fuel their matching Land Rovers.
So why do it? Politics! Studies show a correlation between a competitive political environment, and freezes in fuel duty. In other words, the Tories fear it's a vote-loser (and for their voter base it would be) so they chose the austerity route instead.
lse.ac.uk/GranthamInstit…
lse.ac.uk/GranthamInstit…
