Wednesday, 23 March 2011

Why fuel duty is a Tory tax

Thanks to the efforts of Labour MP John Mann who has produced an empirical factual document on changes in fuel duty since 1929 we are able to work out where responsibility lies in fuel duty tax.

It is no surprise then that the Conservatives are waking up to that fact they can no longer play the blame game.

The summary findings are

· The Liberals and Conservatives introduced fuel duty and VAT

· Of every pound spent on fuel, Conservatives are responsible for around 43 pence of tax. Labour are responsible for 17 pence.

· 70% of tax on fuel is Tory tax.

· Conservatives introduced VAT, and raised it four times: from 0 to 10%, from 12.5% to 15%; from 15% to 17.5% and from 17.5% to 20%.

· Conservatives quintupled fuel duty between 1979 and 1997

· In 1999, the Labour Government stopped the fuel duty escalator and the proportion of tax on fuel fell by a fifth to a level not seen since 1992.