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Motorists Fork outŁ1,000 a year in fuel tax

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Published: 02-Jun-2008
Criticism of the government's fuel tax has began piling up as the People revealed the average driver spends £910 in duty and VAT every year.

The paper said Britain has the cheapest fuel in Europe before the government skims off 60 pence from every pound spent at the pump.

And now a group of backbench MPs, headed by former transport minister Stephen Ladyman, is calling for an end to escalating fuel duty.

Dr Ladyman told Progress, an independent forum for Labour supporters, that: "Motorists understand the need to raise money from fuel duty but they don't believe the fuel duty escalator and recent changes to road tax are fair.

"So let's start the process of striking our deal with the motoring public by scrapping the fuel duty escalator and replacing it with a duty moderator that recognises that when the price of fuel goes up the exchequer's VAT take increases and the rate of fuel duty can go down."

The backlash from MPs follows a two mile strike by lorry drivers in London last week over the price of diesel and Gordon Brown's emergency meeting with oil industry leaders to improve fuel supply.
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