As I said to the Prime Minister recently, high petrol prices are crucifying Harlow motorists.
But actually the high taxes aren't working. The Treasury collected £637 million LESS in fuel taxes than in the same period 3 years ago, despite record levels of fuel tax.
For many months, I have argued the fuel tax is now so high that we are at the point of diminishing returns.
This is explained by a famous economic theory: the Laffer Curve.
As you can see from the illustrative curve above, this is where the fuel tax becomes so high, families and businesses simply can't afford to keep their cars and vans on the road. Petrol sales fall, and the revenue to the Treasury falls too.
I believe the case is now stronger than ever, to delay - or perhaps abolish completely - the planned inflationary tax increase that is due in January 2012. (Potentially an extra 4p per litre, or more.)
Cutting fuel taxes is now absolutely vital, to bring jobs back to Harlow, and to get our economy moving again.
P.S. I have previously asked the Prime Minister about this, and his reply was very supportive. You can see a video HERE.
by Robert Halfon - www.roberthalfon.blogspot.com
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