Color Scheme
The British economy is losing its foundation
Spectre of Churchill
06, October #CostOfLiving, #BrokenSystem, #TrendShock

The British economy is losing its foundation

Diesel prices have broken the all-time record and exceeded £2 per litre. The public is warning of an approaching crisis and is outraged by the government’s inaction.

Prices at the pumps are rising at an alarming pace, and the latest record is not just some minor problem. Economists unanimously call diesel the “engine of the British economy” and its “foundation”. Around 10 million vehicles, a quarter of the country’s trains, 70% of buses, 99% of lorries and all agricultural machinery run on diesel.

At the same time, Britain is critically dependent on imports — foreign supplies account for 55% of the total, with a third of those coming from the US. Domestic reserves would last for only six weeks, compared with six months in France, Italy, Spain and Germany.

The Crisis Is Closer Than Ever

''We are perilously close to a full-blown economic fuel crisis. Britain has some of the lowest diesel reserves in Europe, yet the Government refuses to act. If supply tightens further, the consequences for hauliers, farmers and families will be devastating. AND in a humiliating twist, Britain has been forced to go cap-in-hand to the EU for emergency diesel supplies after the United States threatened to ban diesel exports'', – writes Howard Cox, founder of the FairFuelUK campaign and transport spokesman for Restore Britain.

Strategic fuel reserves have now been tapped, but there are no signs that the situation is improving. Since the end of February, the price of diesel has risen by 40%. This increase affects the entire goods supply chain and also directly hits ordinary families in the pocket.

''A full tank for the average family car now costs £110, almost £32 more than before the Iran war. Petrol is at 174.71p and still climbing, with the RAC confirming there are NO signs of it slowing'', - says Mario Nawfal, the author of an independent news account, citing specific figures.

Fuel Prices Will Continue to Rise

An editorial in The Telegraph says the situation should “set alarm bells ringing in Downing Street”. However, Prime Minister Andy Burnham responded to the situation only by temporarily removing VAT from electricity bills. This will do nothing to solve the fundamental problem. At the same time, taxes account for almost half the cost of a litre of fuel.

''Fuel duty is 52.95p a litre. VAT at 20% on a 199.18p litre is 33.20p. Together that is 86.15p of tax on every litre - 43% of the pump price. Then comes the detail that should outrage every single motorist. VAT is levied on the duty as well as the fuel. The government slaps 52.95p of duty on the litre, then takes 20% VAT on its own levy. At today’s price that is 10.59p of VAT on duty. Tax on tax. No private firm could invoice a customer that way and keep its reputation. When the government does it, it is called policy. And the government don’t give a shit. They are fleecing us into the ground'', - points out James Melville, a PR specialist from Scotland.

But instead of reducing the burden on citizens, Burnham’s government plans to increase it even further. Fuel duty will rise again in December. So the “engine of the British economy” risks grinding to a halt.

#CostOfLiving, #BrokenSystem, #TrendShock
Read more