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Treasury 'has enjoyed £4bn fuel windfall'
By David Millward, Transport Editor
Last Updated: 1:49am GMT 14/02/2008

Motoring and business groups have united in condemning the Government after it denied it had enjoyed a multi-billion pound windfall from the soaring price of oil.

Ministers provoked further anger by rejecting pleas to shelve a planned rise of 2p per litre in fuel duty.

Motoring groups said the rising price of oil is benefiting the Treasury by as much as £4billion.

advertisementBut Angela Eagle, a junior Treasury minister, said: "The Government rejects the notion that there is a windfall, as any increase in VAT receipts from the retail fuel sector is not by design."

Edmund King, the president of the AA, accused the Government of being "disingenuous".

He said: "If you take into account what they are getting in Petroleum Revenue Tax from the North Sea, the Treasury has enjoyed a £4billion windfall."

Mr King added: "People on low incomes are spending a quarter of their household budget on motoring."

David Frost, the director general of the British Chambers of Commerce, said the Government's policy was damaging Britain's economy.

"The Government has received billions of pounds of unexpected revenue from recent high oil prices which negates the need for the extra money set to come from the 2p rise in April."

You no doubt expect road improvements - those have got to be paid for somehow!

Stop nit picking! You know that the money to pay MP's children as researchers had to come from somewhere!

On this subject, I'm just back from Holland (you know, the environmentally friendly country with all the windmills). They are improving their busiest motorway, the A2 Amsterdam to Utrecht. They obviously don't subscribe to the "more roads just encourage driving" mindset we have over here. They are increasing the 50Km road to 12 lanes!

Now, that's value for taxes.

......and. They've dropped their speed limits to 60mph on ALL motorways................It's becoming a nightmare to drive there with cameras an' all, (just like here)...but I Echo your sentiment!