Autocar’s budget analysis, brought to you as George Osborne was standing at the despatch box, summarises the key fuel tax changes, but don’t be fooled into celebrating.
Diesel costs around 140p per litre. Of that 140p, 23p is VAT (some of it on the duty, unbelievably) and 58p is duty, leaving 59p for the fuel. That means for that for every litre you buy, the government gets 81p.
So, when you fill the tank of a family car (around 50 litres) you still pay an absolutely staggering £40 in tax. For every tank.
We’re always being told that when consumer spending on the high street picks up the economy will recover. Well you’d have to pay £240 for fridge, DVD player or microwave to make the same tax contribution as you do from one tank of fuel.
It sounds to me that rather than encouraging us to blow our savings or max the credit card on a new bit of kit, they’d be better off encouraging us to put family first and visit the relatives, ideally on the other side of the country.