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Our UK correspondents’ insights

May 27th, 2008

Oil prices - fuelling more problems for Labour?

Posted by: Avril Ormsby

fuel.jpgRoads into London and Cardiff are expected to be jammed with lorry convoys as part of a protest at the soaring cost of fuel.

Average prices have risen during the past month by their highest margin this century to 114.2 pence per litre of petrol and 126.7 pence per litre of diesel, the AA says.

In January, the national average petrol price was 104.3 pence per litre and diesel was 109.2 pence per litre.

The rise has mirrored the cost of oil as it recently breached $130 a barrel.

The government has staved off one planned increase in fuel duty, but a 2 pence rise is scheduled to go ahead in the autumn, affecting all motorists.

The government blames the rising cost of oil for forcing up prices on garage forecourts, but drivers say the Treasury should reduce levies.

Do you think the government, which was forced into a U-turn over the 10 pence tax rate last month, should be forced into another by reducing fuel levies to help motorists and the haulage industry?

If so, where else could it get its money?

And how would such a tactic fit with its so-called green credentials?

March 12th, 2008

A good budget?

Posted by: Avril Ormsby

darlin2.jpgThe headlines say it was a budget that hit drinkers, smokers and gas-guzzlers.

Chancellor Alistair Darling hiked up the usual “sin taxes” in his first budget.

But he also postponed a 2p rise in fuel taxes until October.

He also made a bid for the green vote with a call for a new road pricing scheme and for retailers to charge customers for plastic bags.

Analysts said he had little room to “pull a rabbit out of the hat” because of the slowing economy and global credit crunch.

And indeed, he cut growth forecasts and ramped up borrowing.

Has it been a good or bad budget for you? - And was it a success or failure for Darling?