Wednesday, 6 March 2024

The UK's Regressive Fuel -Tax Cut

To much right-wing acclaim, the UK introduced a 5 pence freeze on car fuel duty in 2022. The Social Market Foundation thinktank now estimates this has cost the UK Treasury, since 2011, £100 bn. The thinktank suggests that this policy is really bad value for the money (https://www.theguardian.com/politics/2024/mar/06/uk-fuel-duty-cut-regressive-policy-benefits-wealthy-study). The Social Market Foundation found the UK's fuel-tax duty freeze, saved well-off motorists and lower earners circa £60 and £22 each year, respectively. Unremarkably, the wealthier motorists also generally own more cars, as well as driving less fuel-efficient vehciles (like SUVs or 'Chelsea tractors'). There's an obvious need to reduce the contributions made by vehicular emissions to atmospheric pollution. Particulates, nitrous oxides, volatile compounds and carbon dioxide all combine to increase ill-health, reduce longevity and help global heating to speed ever onwards. There's a clear requirement to boost cleaner and cheaper public transport (get more people off the road!). Fuel-tax cuts for petrol and diesel cars, actually does the opposite.

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