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I have again impressed upon the UK Government the urgent need for a serious and meaningful cut to VAT on petrol and diesel as these rising costs drive up prices across the economy which is feeding inflation. As well as the difficulties this causes for motorists, it increases the cost of all goods and services across the whole economy.

The Chancellor’s 5 pence cut to fuel duty in his Spring Statement was woefully inadequate as it was simply swallowed up by rising prices. Consumers are also paying 20% VAT on the total cost of their fuel at the petrol pump, in addition to the fuel duty charged, so they pay a tax on the tax charged to their fuel which currently amounts to around 80p tax on each litre of fuel purchased at the pump.

The Treasury is raking in 20% of the total cost at the forecourt, with fuel price increases bringing in additional VAT, amounting to billions of pounds, all of which is helping to accelerate inflation. As the cost of fuel has risen, so has the VAT being raked in by the Treasury—vast additional revenue for the Chancellor.

We are living through unprecedented times, and bold action and brave hearts are needed. Over 100,000 people signed a Parliamentary petition to bring down the cost of fuel. The dithering and delay must end. Halving VAT on fuel will have an immediate and positive impact across the UK economy.

Watch my latest contribution to the debate below 👇.


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