25/08/09 - Labour Impose Yet Another Tax Grab On Fuel

Labour were blasted last night after declaring they WILL slap another 2p on the price of a litre of petrol and diesel from next week, followed by a further 1p per year for the next 4 years.

Family budgets are being squeezed yet further as a result of the measures set out in the last Labour Budget. 

But furious motoring organisations last night urged the Government to think again. AA president Edmund King said: "With family budgets under the cosh from rising pump prices, it defies all logic for the Government to increase fuel duty.

"Drivers will pay the higher pump prices to go about their daily lives but have to find other ways to reduce costs.

"This takes potential consumer spending away from UK businesses struggling to get back on their feet."

He said the recession had already triggered a drop in petrol and diesel sales - slashing £100 million from the Government's income from fuel duty.

The Conservatives are consulting on plans for a fair fuel stabiliser to replace the current fuel tax regime, so that tax falls when the price rises, and rises when prices fall. This would protect the public finances from fluctuations in the international oil price, and help families cope with rapid changes in the cost of living.

Cllr Justin Tomlinson, Swindon North Conservative Parliamentary Candidate, said: "As local families struggle to cope with Labour's recession, further tax grabs will only make matters worse.  Time and time again Labour resort to costly tax grabs at the very worst times.''