Since I am the UK correspondent for TVHE I thought I had better contribute something to the blog. Then I stumbled across this gem from today.
One of the centre-pieces of the budget was the reduction in fuel tax (it has had a lot of media coverage). Not only was the fuel tax increase cancelled, fuel tax was in fact decreased by 1p per litre. According to Chancellor Osborne, this move would lead to motoring costs falling for families and businesses.
Given the budget was a fiscally neutral one, in that all additional spending/tax cuts come from spending cuts/tax increases in other areas, how is this cut in fuel tax being funded?
By an increase in taxes on North Sea oil production, from 20% to 32%.
I’ll leave it to the reader to think about what effect this increase in production tax might have at the petrol pump.