Darling admits fuel rises will boost coffers
 18 Jun 2008
Chancellor Alistair Darling has confirmed that soaring oil prices will "generate greater receipts".
The cost of oil rose this week to a record high of almost $140 (£71.77) a barrel and oil prices have doubled over the past year.
Rapid increases in oil prices have fed through to fuel and home heating oil, increasing government revenue from taxes.
Calls are growing from businesses, motorists and fuel customers for the government to take action in order to cut taxes and tackle rising prices. The government gathers tax against fuel costs in the form of North Sea corporation tax, VAT and petroleum revenue tax.
In a letter to Scottish first minister Alex Salmond, Mr Darling stated that it was not yet clear what level of extra tax would be generated by oil price increases and there would be no VAT windfall, the BBC reports.
Scottish ministers are examining the possibility of establishing an oil fund in the country, which the chancellor has dismissed as "inappropriate".
Mr Darling is due to deliver his first Mansion House speech to the City in which he is expected to discuss soaring oil prices.
Click here to view home heating oil price trends.
RSS newsfeed
Stay up to date with our RSS newsfeed with articles for all home heating oil users including market/price news and environmental issues.
 RSS newsfeed
Get your FREE instant online quote for home heating oil - we find the cheapest price in your area, saving you time, money and hassle!
More news:
News archive...
© Adfero Ltd
|
