Downing Street Says » Fuel Duty

» Monday, February 11, 2008

Fuel Duty

Asked if the Prime Minister had any reassurance for people concerned about fuel duty, the PMS said that people had to bear in mind that this was part of a budget package that included a two pence reduction in the basic rate of income tax that would benefit millions of people; you had to look at this in the round. There were also measures which reduced the vehicle excise duty for environmentally friendly vehicles and some specific help for hauliers. It was important to look at the budget package as a whole and not single out individual elements.

Put that that reduction had been wiped out by something else, the PMS replied that that was incorrect; there was a £3 billion transfer from indirect taxes to pay for an overall reduction in direct taxes, so as the overall effect of the budget was neutral; a few duty increases effectively paying for the personal tax package in the budget.

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