[Tengocity]

Might not be a popular view but in this era of low fuel prices I can't help but think that it was the right time for the chancellor to raise fuel duty.
Raising now would give scope to cut them when prices go back up in years to come.

Thoughts?

[dopper99]

Haha, that would have upset all the petrol owners.

[Tengocity]

Would have affected all car users...

[DougMcL]

Nope, the reason he didn't was to try and help a still struggling economy. The FTSE 100 is like a rollercoaster at the moment...

[....,,,,..,,..]

I watched one of the politics shows last week, they were alluding to the government actually getting in either the same or slightly more revenue since price dropped.

This is due apparently to people putting in more fuel than usual and going on trips that previously they avoided due to fuel costs.

Those trips to aunt Meg you put off etc.

[Tengocity]

Originally Posted by Brigand

I watched one of the politics shows last week, they were alluding to the government actually getting in either the same or slightly more revenue since price dropped.

This is due apparently to people putting in more fuel than usual and going on trips that previously they avoided due to fuel costs.

Those trips to aunt Meg you put off etc.

Or maybe buying 340i models instead of 320ds?

Anyway, can't see that's the case as most journeys are in connection with work or business and that's seven by how the economy is doing generally.

I'd got used to 120-140p per litre so just think that it would have been better for it to be up say 10p per litre just now so that it could stay more like that price in a few years when oil prices go back up, inflation goes up and we are in the middle of a recession.

[dopper99]

Originally Posted by Tengocity

Would have affected all car users...

Yes agreed, but as petrols do less to the gallon, it will hit them in the pocket the most.
If fuel prices doubled it would cost approx £100 to fill up a 3 series and a 335i or 340i will get around 350 miles to a tank whereas a 335d will get 450 miles (my own estimation based on what people have said on here).

[Chompers]

Originally Posted by DougMcL

Nope, the reason he didn't was to try and help a still struggling economy. The FTSE 100 is like a rollercoaster at the moment...

That's a good thing though if you invest in the markets. As for fuel duty, I really don't know what the solution is. VED looks like the preferred method of hitting us in the pocket

[JNW1]

Originally Posted by Chompers

That's a good thing though if you invest in the markets. As for fuel duty, I really don't know what the solution is. VED looks like the preferred method of hitting us in the pocket

Wouldn't have supported increasing fuel duty in isolation but wouldn't have been unhappy to see it go up in return for scrapping VED - on balance taxing vehicle use rather than vehicle ownership seems fairer to me....

[Chompers]

Originally Posted by JNW1

Wouldn't have supported increasing fuel duty in isolation but wouldn't have been unhappy to see it go up in return for scrapping VED - on balance taxing vehicle use rather than vehicle ownership seems fairer to me....

Yes thought the same, trouble is industry suffers, road haulage and the like. The man who has £40k to spend on a car is already hit hard. Which seems completely wrong. He probably has his kids in private school, has private heath & dental insurance and is a 40% tax payer. You'd be forgiven for wondering why he bothers

[Tengocity]

Originally Posted by Chompers

Yes thought the same, trouble is industry suffers, road haulage and the like. The man who has £40k to spend on a car is already hit hard. Which seems completely wrong. He probably has his kids in private school, has private heath & dental insurance and is a 40% tax payer. You'd be forgiven for wondering why he bothers

I doubt many people earning 40k have kids in private school!

[Tengocity]

Originally Posted by DougMcL

Nope, the reason he didn't was to try and help a still struggling economy. The FTSE 100 is like a rollercoaster at the moment...

The FT100 isn't all that reflective of the U.K. Economy as its full of huge global companies, most of who's revenues are derived outside the uk. The FT250 is a better reflection of the wider uk economy and had done better of late, reflecting the uk economy doing better than the global one.

[robwils]

Originally Posted by Tengocity

I doubt many people earning 40k have kids in private school!

Think he said 40K to spend on a car

[Chompers]

Originally Posted by Tengocity

I doubt many people earning 40k have kids in private school!

I didn't say that

[Tengocity]

Originally Posted by robwils

Think he said 40K to spend on a car

Ah yes indeed he did. Still can't see it being the norm that 40k car users have kids in private school though.

Anyway my point is not that we should pay more fuel duty per se, but that we up it just now, to give room to reduce it later, thereby smoothing the price out. That relative stability being better for budgeting for families, just like fixed rate mortgages are.

[Tengocity]

Originally Posted by Lobb

Absolutely not.

The UK already has one of the most highly taxed petrol / diesel in the world. And given most of the goods we buy need to be transported, not the time to take spending power away from consumers.

So wouldn't be more useful for them to be able to cut when the oil prices go up or during a recession?

[ewanmac]

I thought he would increase fuel duty also to pay for tax cuts for the oil & gas sector. He did the opposite a few years ago by introducing a supplementary charge on oil profits to pay for a fuel duty cut.

There has been talk of a stabiliser in the past and I expected duty to be raised now given the low oil price and then potentially reduced in the future when prices recover.

Having said that, he has made significant cuts for oil explorers just funded elsewhere.

[Wills2]

Originally Posted by Tengocity

The FT100 isn't all that reflective of the U.K. Economy as its full of huge global companies, most of who's revenues are derived outside the uk. The FT250 is a better reflection of the wider uk economy and had done better of late, reflecting the uk economy doing better than the global one.

The FTSE isn't often reflective of anything, I watch our share price as we are in the FTSE100 it lost 20% and then gained 20% over the last few weeks for no specific reason whatsoever, that's over £1 billion swing in market cap.

Sentiment....

[Tengocity]

Originally Posted by Wills2

The FTSE isn't often reflective of anything, I watch our share price as we are in the FTSE100 it lost 20% and then gained 20% over the last few weeks for no specific reason whatsoever, that's over £1 billion swing in market cap.

Sentiment....

Indeed. It's probably most reflective of oil companies, mining companies, and banks, all of which aren't doing great.

[Wills2]

Originally Posted by Tengocity

Indeed. It's probably most reflective of oil companies, mining companies, and banks, all of which aren't doing great.

Indeed but it has still gained 700 points in the last 4 weeks for no apparent reason, as they are still in trouble...

It went from 6300 to 5500 through Jan as all was doom and gloom then has drifted back up to 6200 (ish)

Like a 100 boats all rising and falling on the tide...

[Andrewthefirst]

I would guess he wanted to put fuel duty up a) to raise funds to counteract the slower than forecast growth, and b) for the reason Tengo suggests. It makes perfect sense - whilst I personally wouldn't agree with it (as we are already so highly taxed).

I'd say the reason he didn't is all to do with the EU referendum and wanting to keep some goodwill on the side of the government. Dave has told him over a glass of champers to keep things as quiet as possible until we get the frightful referendum over with good golly gosh.

[Tengocity]

Originally Posted by Andrewthefirst

I would guess he wanted to put fuel duty up a) to raise funds to counteract the slower than forecast growth, and b) for the reason Tengo suggests. It makes perfect sense - whilst I personally wouldn't agree with it (as we are already so highly taxed).

I'd say the reason he didn't is all to do with the EU referendum and wanting to keep some goodwill on the side of the government. Dave has told him over a glass of champers to keep things as quiet as possible until we get the frightful referendum over with good golly gosh.

The biggest issue if if he actually implemented something like my suggestion is that no one would believe it would ever come down again. I would see it as something akin to the fuel surcharge the airlines were charging that's gone now. The government could set a "target" fuel price and modulate part of the tax take accordingly.