Fuel tax cut slammed as ‘ineffective and unfair’ by energy expert Brighton News

The CHANCELLOR’s fuel tax cut has been criticized by an energy expert as an ‘ineffective and unfair response to the cost of living crisis’.

In his spring statement, Chancellor Rishi Sunak announced a fivepence fuel tax cut, which will come into effect from 6pm tonight and will last for a year.

However, Steven Sorrell, a professor in the Science Policy Research Unit at the University of Sussex Business School, said the cut will benefit the richest ten per cent of UK households the most.

He said: “While almost half of poor households do not own a car, many wealthy households drive long distances in gas-guzzling SUVs.

“Given that the richest 10% of UK households spend six times more on fuel than the poorest 10%, most of the benefits go to the wealthy.

Professor Sorrell also said the reduction will slow the transition from fossil fuels and government efforts could have been more effective in tackling energy bills.

He said: “Not everyone drives, but everyone needs to heat their home. Instead of cutting fuel taxes, the government should prioritize helping household heating bills, including increasing investment in energy efficiency.

He also said oil companies could adjust their prices in reaction to the policy aimed at “inflating their profits”.

Addressing the House of Commons, Mr Sunak said the government wanted people to know they will ‘stand with them’ in the face of the rising cost of living.

The Chancellor also announced an increase in the National Insurance threshold by £3,000 and that the basic rate of income tax will drop by 1% by the next election.

However, Mr Sunak criticized Labor Shadow Chancellor Rachel Reeves for not abandoning a planned National Insurance increase and called on the government to introduce a one-off tax on oil and gas companies.

RAC policy chief Nicholas Lyes described the fuel tax cut as a ‘drop in the ocean’ and said it ‘would only bring prices back to where they were a while ago. little more than a week”.

He said: “There is also a very real risk that retailers could simply absorb some or all of the tariffs themselves by not lowering their prices.

“If that turns out to be the case, it will be disastrous for drivers.”

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This notice was published: 2022-03-23 14:28:43

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