The IFS have said that the tax windfall is enough to postpone the proposed rise in fuel duty. See Independent report: Tax windfall enough to cover fuel duty freeze, says IFS.
I sincerely hope that Gordon Brown does postpone the 2p rise scheduled for October. Many people are feeling the pinch, particularly road hauliers and businesses like my employer’s. As Land Surveyors travel up and down the country everyday and as a result we are spending more any more on diesel. With the economy stalled we can not pass the higher fuel costs to our customers.
Ordinarily a rise in fuel duty is a good way to force people to change their driving habits. However, with the economy they way it is, these are definitely not ordinary circumstances. Gordon Brown must now consider a cut in fuel duty to help stimulate the economy. I know this is difficult but he should pass back some of the huge tax profits that have been made on the back of the steep rise of oil.
Once the economy is more stable, then is the time for fuel duty rises, but only if even bigger incentives are included in the package to encourage people to change purchasing habits. Asking ordinary people to change cars when the economy is stalled and people are trying to cut back their spending is madness. It would not be half as bad if he actually ploughed the money back into roads and public transport. Unfortunately for Gordon his is cash strapped and left the country with little wiggle room.
It might only be me but when I think of Gordon Brown and all those oil barrels, I can’t help but think of Donkey Kong, the classic computer game. Check it out here if you are feeling reflective like me: Donkey Kong Flash Game .