Fear: families with two cars have to deal with an increase of nearly £ 200 in driving costs
Families with two cars could see the cost of driving at nearly £ 200 a year if the fuel tax is increased to give a boost to health spending.
The chancellor is generally expected to raise the fuel tax in the budget after he has pointed out that the seven-year freeze cost the Treasury £ 46 billion.
The AA has estimated that the tax on fuel – which has remained at 57.95 pence since 2011 – could rise by 8 pence per liter to generate funds for the NHS, & # 39; crippling & # 39; young drivers and low-income families.
Philip Hammond pointed out earlier this week that he may cancel the seven-year freeze of fuel tax and MPs will tell that they & # 39; the other side of the coin & # 39; need to consider.
The chancellor is expected to make drastic changes in the context of his next budget text if the government is to fulfill its promise to give the NHS an additional £ 20 billion per year by 2023 per year.
To make that happen, the car-driving organization has worked out that the fuel excise duty would have to rise 8 horsepower for every liter of driver that is full, bringing it to 65.95 hp.
This would be a worst case scenario, as it is likely that Mr Hammond would look elsewhere for tax increases in addition to tax on fuel.
That means that drivers refueling petrol at current prices – taking into account the increase of 8 pence – pay around 48 percent in just the fuel consumption for every liter.
Drivers also pay 20 percent VAT, which would amount to about 22 pence per liter on top of the fuel tax.
This increase would mean an additional £ 192 per year for households with two cars, the calculated authoritarian organization, which exerts financial pressure on many families.
A recent poll of motorists by the AA found that only one per cent believes that increasing fuel tax is the best way to pay extra health expenses.
The price of fuel is the highest since July 2014, according to official statistics
Edmund King, AA president, said: "Administrators support more money for the NHS, but find that funding should come from luxuries such as tobacco and alcohol rather than essentials like fuel.
Many young drivers and low-income families would see their budget paralyzed if the Chancellor would focus his eyes on fuel costs to finance the extra NHS expenditures.
What he sees as a smart move would actually be carefree and dangerous, because it could shake off the entire economy from its already precarious track.
• Mr. Hammond must follow his plans, he will not only harm low-income families, he will also hurt companies.
With almost no public support, the Chancellor has enough time to reconsider his plans before announcing the budget in the coming months. & # 39;
Motorists currently experience the highest pump prices in four years.
Fuel costs have risen for 10 consecutive weeks, with an average price of one liter of petrol of more than £ 1.30 on British forecourts, with a diesel of over £ 1.34.
The last time that fuel was expensive was July 2014.
How fuel prices are built: a large part is fuel consumption and VAT, as can be seen in this graph based on petrol prices of 132.9 pence per liter and diesel at 137.9 pk
Since April, the cost of filling a typical 55-liter family car on petrol or diesel has increased by around £ 6.
And in addition to the threat of increasing fuel taxes, motorists are faced with a second blow due to higher oil prices.
The cost of crude oil spiked this week in anticipation of production disruptions in the aftermath of Hurricane Florence, which is on its way to the American coast around the Carolinas – and could continue to rise, the RAC Foundation warned earlier this week.
However, this is not the first time in the last seven years that insiders have predicted an increase in fuel tax.
But despite constant fears, the government has maintained fuel taxes since 2011 at a rate of just under 58 pence per liter.
Mr. Hammond said this has saved the average car driver £ 850 compared to the pre-2010 escalator.
SAVE MONEY FOR THE DRIVING