One of Bath & North East Somerset’s most senior councillors is calling on the government to do more to support local families by cutting VAT on motor fuel.
Cllr Karen Walker, a former two-time Chairwoman of the local authority, has formally requested that the Leader of the Council and the Cabinet write to the Minister of State responsible for VAT to raise concerns about how high fuel costs are placing an unnecessary financial burden on households, small businesses, carers, key workers, and others who rely on private transport.
Cllr Walker (Independent) who represents the village of Peasedown St John, said:
“Residents in rural and semi-rural communities are disproportionately affected due to more limited public transport options and greater dependence on cars.
Reducing or abolishing VAT on motor fuel would provide direct financial relief to motorists and help alleviate wider cost-of-living pressures.
The current system, whereby VAT is charged on top of fuel duty, is unfair and places additional pressure on consumers during periods of sustained economic difficulty.”
Motor fuel in the UK is subject to both fuel duty and Value Added Tax (VAT), with VAT currently charged at the standard rate of 20%.
VAT is applied to the total price of fuel including fuel duty, which makes this a further tax levied on top of a prior tax. Recent increases in the base cost of fuel have resulted in a proportionate rise in the amount of VAT levied.
“Fuel duty and VAT together represent a significant proportion of the price paid at the pump, contributing to overall fuel costs borne by motorists,” added Karen, “The British Government retains sole responsibility for setting VAT and fuel duty rates and need to seriously consider cutting it to support local struggling families.”
Cllr Karen Walker has requested that the Leader of the Council, Cllr Kevin Guy:
- Writes to the relevant Government Minister, Dan Tomlinson, Exchequer Secretary to the Treasury, the responsible minister for VAT, setting out local concerns regarding the current level of VAT on motor fue
- Calls on the Government to reduce VAT on motor fuel, and to give serious consideration to its full abolition, in order to:
– Provide direct financial relief to residents and businesses
– Support rural and semi-rural communities
– Help mitigate wider cost-of-living pressures
- Encourage local Members of Parliament to support this request and to raise the matter within Parliament.
