UK NEWS

DARLING’S £4M-AN-HOUR FUEL WINDFALL

The Chancellor will be quids in

Sunday May 4,2008

By Brendan Abbot

SOARING fuel prices will allow Labour to siphon off a record £4million every hour in duty from motorists this year.

Accountants Grant Thornton forecast fuel taxes going to Chancellor of the Exchequer Alistair Darling will amount to £34billion.

Basic fuel duty ñ which is more than 50p per litre ñ will net £25.7billion. Rising oil prices mean VAT on fuel is on course to net an additional £8.5billion. The total, equivalent to almost £4million an hour, led to fresh calls last night for Prime Minister Gordon Brown to act to slash duty.†

Roger King, chief executive of the Road Haulage Association, described VAT on fuel as ìthe ultimate stealth taxî.†

He urged the Government to cancel a 2p rise in duty in the autumn and to use VAT receipts to cap prices. He also warned that protests by lorry drivers could turn violent.†

ìPeople have to pay taxes but the amount the Government is taking from the motorist is utterly obscene,î he said.†

Grant Thornton said deferring the 2p rise for six months would cost around £550million ñ far less than the VAT windfall.†

Ministers insist they have no control over world oil prices but campaigners point to countries such as India, which has cut duty when oil prices rise. MPs will push this week for a similar system.