Rising Bad Credit Debt and Increasing Motoring Costs Has Prompted Possible Fuel Tax Amendments in March’s Budget
David Cameron has suggested that relief from rocketing fuel prices could be on the way in March’s Budget.
The current Prime Minister said the Treasury was examining the ‘very attractive idea’ of reforming the tax system in order to stabilise already record high prices.
“Coupled with other rising living costs, the fuel hikes are causing many UK families to experience bad credit debt with the possible need for car loan credit or bad credit car loan financing to keep up with simple running costs.”
Alternative options include the Chancellor George Osborne postponing a fuel duty increase which was announced by Labour, due to come into effect on April 1.
The Government are said to be feeling the strain to abandon the forthcoming duty increase and there are growing indications that ministers are keen to respond to public anger over soaring petrol prices.
Mr Cameron said that the Government was continuing to consider the option of a ‘fuel-stabiliser’.
The rate of duty, which brings in additional tax revenue to the Treasury, would be cut as oil prices rise and duty goes up when oil prices fall.
Mr Cameron said; “We have to look very carefully at exactly how much more revenue that does mean for the Treasury, what the effect is of a higher oil price.”
“I am not pretending this is easy. It is difficult. A rising oil price also has some bad effects on the economy and can reduce revenue.”
“But should we look at ways of trying to share that pain, to share that burden? Yes, that’s absolutely what we are doing.”
A Government source added: “We are trying to sort something out, but the Budget is the time for announcements like this. Clearly this would involve quite a lot of money.”
Mr Osborne has received letters from Petrol retailers, urging him to abandon the next automatic ‘escalator’ rise in fuel duty of 1p ‘plus inflation’.
This would see pump prices soar by up to 5p a litre, with an additional 3p in the pipeline from rising oil prices.
The cost of unleaded petrol would be taken up to £1.36 a litre (£6.18 a gallon), with diesel reaching £1.40 a litre (£6.36 a gallon), possibly taking the cost of fuel beyond the reach of UK families with bad credit debt.
Filling a car with a 50-litre tank would cost around £70, but only 12 months ago, when petrol was £1.18 a litre, this would have cost just £56.
“The forecasted rise would represent a mark-up of 25% in only a year,” stated Mr James of Bad Credit Loans 4 You.
“This is well beyond any inflation figures and potentially life-changing for many UK families who are already facing bad credit debt issues or bad credit car problems.”
Recent figures from the AA show the average price of petrol has risen to £1.28 this month.
Adrian Tink, RAC motoring strategist, said; “We fully support the call to scrap the April fuel duty rise.”
The average one-car family in the UK will now pay £1,629 for petrol in a year, which is up a staggering amount from £1,419 last year.
Liftshare, the largest car-share network in the UK, has released research results which show a 63% rise in motorists signing up to UK car-share groups in the first half of January, compared with the same period last year.
Ali Clabburn, Liftshare founder, said; “With petrol prices steadily increasing it’s no surprise to see that more and more people want to share.”
“I think we will see share requests continue to increase over the coming months too, as increased VAT and fuel duty kick in, and other commuters are forced off the trains by the big increase in rail fares.”
Green campaigners said soaring fuel prices were ‘good for the planet’ because they would drive motorists out of traditional cars and into cleaner vehicles or onto public transport.
Tony Bosworth, Friends of the Earth transport campaigner, said; “The days of cheap fuel are over and ministers must stand up to the motoring lobby and make it clear that petrol prices will continue to rise.”
Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of past poor credit history which could include CCJ’s and defaults, arrears, late credit card payments or repossession.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
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Loans 4 You of London Ltd
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Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need, including no credit car loans for people with bad credit.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
