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The Government has got it right

At the Fuelcard Company, We believe the Government got it right when it denied Labour’s calls to reverse the VAT increase on petrol this week, with a majority of 65 MPs rejecting the bid.

Measures such as these are only a short-term fix – the British public might face having to pay for any deficit caused by a decision to lower VAT on fuel via other means. How else would the Government make up for it?

These reversals in pre-planned VAT or duty rises are nothing more than temporary measures to achieve quick-fix solutions; they have no durable substance. The Government needs to commit to a long-term strategy to benefit both us in the transport sector as well as the general public – it must not renege on its promises again and must implement a fair fuel policy as a matter of urgency.

The Fuelcard Company believes a fair fuel stabiliser would be the most effective long-term measure of protecting motorists and businesses against major rises in tax on fuel.

The fleet industry simply can’t sustain this level of taxation and many smaller fleet companies have already ceased trading – our industry is being put out of business, how much longer can this go on?

If the Government does not take rapid action it will not just be the transport industry that suffers but every single household in the UK. A recent survey has shown that 53 per cent of financial directors from all industries are concerned about the cost of fuel impacting on their business with one in ten expecting to make redundancies if fuel prices hit £1.70.

At Prime Minister’s Questions earlier this month, David Cameron noted that he understood how hard it is, especially for families and small businesses, when petrol prices are at £1.30 per litre.

He said: “We will look at the fact that extra revenue comes to the Treasury when there’s a higher oil price and see if we can share some of that benefit with the motorist.”

‘We will look at it and see if…’? Perhaps we shouldn’t hold our breath waiting to see these benefits…

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