Rachel Reeves ’benefitting’ from UK petrol and | Tech News
Rachel Reeves is “benefitting” from the UK’s ongoing petrol and diesel fuel disaster, with the Government making money on increased fuel pump costs, specialists have claimed. Steve Walker, Head of Digital Content at Auto Express, has claimed officers have been “quietly profiting” as drivers forked out more at petrol stations.
Unleaded petrol is up 16.6p for the reason that begin of the battle within the Middle East, with diesel up a whopping 33.4p for the reason that begin of February. Fuel obligation is set at 52.95 pence per litre, however drivers pay an further 20% VAT utilized to the full value, which varies with the pump price.
Recent evaluation by the RAC Foundation estimated that price rises for the reason that finish of February have value motorists £307million in further petrol and diesel charges. With VAT charged at 20%, it means round £51 million of further income has gone straight to the Government over the previous 4 weeks.
Steve stated: “The Government can’t have it both ways. On one hand, it’s calling in the CMA to investigate fuel retailers for alleged profiteering; on the other, it’s quietly profiting from the very same price rises hitting drivers at the pumps.
“Motorists have already forked out an extra £307 million on fuel, and because VAT is baked into the pump price, the Treasury automatically takes a cut of that. Strip it back and the maths is simple: VAT at 20% of the pre-tax price equates to one-sixth of the final price, meaning roughly £51 million of that extra spend has gone straight to Government coffers.
“That’s a significant windfall generated during a cost-of-living squeeze, and it completely undermines any attempt to position ministers as being on the side of drivers.
“VAT always works this way – it’s 20% of the underlying price, or 16.67% of what drivers actually pay – so every time fuel prices rise, so does the Government’s take. In effect, they are benefiting from the same inflation they’re criticising.”
He will clarify: “The Chancellor is raking it in while motorists suffer. The rising costs of fuel are really hitting alarm-clock Britain right now. She’s making tens of millions of pounds a week in extra tax revenue as a direct result of the war; the least she could do is lessen the blow.”
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