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News Every Day |

Liz Truss’ tax cuts are welcome but where is the help for Britain motorists, who are still being fleeced at the pump?

LIZ Truss became our new Prime Minister after persuading Tory Party members that cutting taxes is the way to grow the economy.

So, I am delighted that tomorrow she and new Chancellor Kwasi Kwarteng will announce the most radical package of tax cuts since the Thatcher era to boost ­enterprise.

Getty
We have heard nothing about helping the UK’s 37million drivers cut the desperate cost of motoring[/caption]
Even though I am delighted that new Chancellor Kwasi Kwarteng will announce tax cuts, the price of filling up cars is still horrifyingly high
Getty

A National Insurance rise brought in to help the NHS will be scrapped and corporation tax, due to rise in 2023, will instead be frozen.

Plus, changes to Stamp Duty, which will breathe new life into the housing market under threat from the cost-of-living crisis, are expected in the emergency mini-Budget.

And the recent cap on energy costs for families and businesses will help the millions scared by the spectre of massive hikes in their gas and electricity bills this winter.

All the changes in the Government’s great giveaway are extremely welcome.

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But the one thing that would really boost Britain’s economy has not even been mentioned.

We have heard nothing from the PM or the Chancellor about helping the UK’s 37million drivers cut the desperate cost of motoring.

Prices at the pumps may have fallen from the highs during the summer of nearly £2 a gallon.

But even at its present average price of 165p for petrol and 182p for diesel, motorists are still paying up to 20p a litre more than necessary.

For many families and small businesses, the price of filling up cars, vans and trucks is still horrifyingly high.

This crisis over petrol and diesel prices has just as much effect on the economy as energy bills.

The damage to businesses, logistics, inflation, economic growth and hard-pressed low-income families because of recent eye-watering pump prices has been immense.

Extreme environmentalists like to paint a picture of selfish motorists who just want lower prices at the pump.

But the reality is that the cost of fuel affects us all — directly or indirectly.

Tomorrow, the Chancellor is planning to remove the cap on bankers’ bonuses to attract more city businesses to set up in the UK.

Punitive level

Well, the same goes for lowering the cost of logistics and distribution.

Cutting the costs of transport will attract manufacturers and other businesses to work from the UK, too. It really is a no-brainer.

Inflation fell by 0.2 percentage points last month. The reason for this small but welcome drop — which came despite food prices still climbing — is almost entirely due to a 10p fall in pump prices in August.

This timely drop in inflation should give Kwasi the reassurance he needs to cut fuel duty by as much as 20p per litre.

Making a big cut in fuel duty will drive inflation down and it can be done by using the extra £2billion the Government has received from high pump prices.

Even a 20p cut will still leave the UK with one of the highest motoring levies in the world.

However, it will reduce the huge burden on families and businesses and also boost tax revenue from the growth in the economy that will come as a result.

Reuters
Liz Truss must introduce PumpWatch, the independent pump pricing watchdog we are all crying out for[/caption]

But, Kwasi, please don’t even think of returning fuel duty to the punitive level it was before the Spring Statement last March.

That’s when former Chancellor Rishi Sunak cut fuel duty by five pence a litre. As we all now know, those savings were not passed on to consumers by the oil companies who continue to make billions extra in profits.

Pumpwatch

In addition to cutting fuel duty, Liz and Kwasi must introduce PumpWatch, the independent pump pricing watchdog we are all crying out for.

In the ten years to 2020, average profit on both diesel and petrol was around 10p per litre — in the last three years it has risen to twice that.

It cannot be right that the Government seems to ignore such chronic profiteering and allows it to continue, despite overwhelming evidence that exploitation is rife.

The combination of cutting fuel duty and introducing PumpWatch will instantly alleviate the cost-of-living crisis considerably.

These are solutions that are guaranteed to work and they are very popular.

A new survey of FairFuel UK members reveals 95 per cent want a cut in fuel duty, 96 per cent favour doing away with VAT on petrol and diesel and 83 per cent back PumpWatch.

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It’s time Britain led the world in having the lowest-priced transport costs, instead of being continually exploited.

It still beggars belief that 37million drivers are seen only as cash cows and not an immediate answer to developing a stronger economy.









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