Budget 2010: Increased taxes on cigarettes, alcohol and fuel
As expected the UK government has announced a number of increases on everyday household purchases which include a three pence increase in fuel duty with one pence coming in April, one pence in October and an additional one pence in January 2011. We have also seen plans to increase duty on wine, beer and spirits by 2% above inflation each year until 2013 as well as a 1% increase in tobacco duty which will rise to 2% in future years.
These are very run-of-the-mill tax increases and were wholly expected by economists although the 10% increase in duty on cider (above and beyond the rate of inflation) will be a bitter blow to the industry. It is unclear exactly how much additional income these tax increases will bring in for the government but they will be significant when you bear in mind UK expenditure on fuel, cigarettes, and alcohol each year.
The issue here is that each and every person in the UK will be hit by these increased taxes in the future which will lead to an ever increasing cost of living in the UK at a time when many people are still struggling. When you also consider that wage inflation has stalled in the short to medium term, due to the fact that many people are still concerned about their jobs, the gap between household income and the cost of living could widen considerably in the short term until the UK economy moves back into a growth phase.
Share this..
Related stories
Where have the billions of pounds of taxpayer's money gone to?
Despite a sustained effort to refloat the UK financial sector using taxpayers money, there has so far been little sign of a return to the UK population. The billions upon billions of pounds which have been ploughed back into share stakes in UK banks and the financial markets as a whole appear to have had little impact as yet. But where have the billions upon billions of pounds gone to?
Is the UK government reducing UK competitiveness by increasing taxes?
A survey by accountants MacIntyre Hudson has confirmed that three quarters of businesses in the UK believe that the UK government is seriously risking the short-term recovery in the UK economy because of its punitive tax regime. This particular point has been reiterated by the two pence a litre increase in fuel tax just today which is the latest in a long line of subtle yet very effective tax incr...
Read MoreProbate fee proposals could mean millions pay more
22/02/2016 Millions of people will be required to pay an increased fee when they die, if new proposals from the Ministry of Justice go ahead. The Ministry of Justice want to raise an extra £250m for the courts service and they have proposed that people should pay up to £20,000 in probate fees when they die, depending on the size of their estate. Probate is a legal process that is carrie...
Read MoreUK public dismayed over MP's expenses
The UK public and Parliament appear to have totally disconnected with news that four MPs charged over alleged fraudulent expense claims could well be tempted to use parliamentary privilege to escape court action. At a time when UK taxpayers are struggling to make ends meet on a monthly basis the headlines in newspapers do not make good reading for UK MPs. Overall MPs expenses were over £90 mil...
Read MoreWill MPs expenses be brought into line?
There is growing concern this evening that the bitter MPs expenses debacle will be watered down in the New Year despite the fact that the government has signalled its intention to incorporate all of Sir Christopher Kelly's proposals into future legislation. This is a bitter blow for the likes of Gordon Brown, David Cameron and the other major political parties who are fighting to regain the trust...
Read More