How important to you is 7p?
Not very? Good—then you will not mind the new tax on petrol due to be imposed later this week.
The problem with the 7p a gallon rise comes with all the other gallons we have to buy in getting from place to place! Pence have a nasty habit of turning into pounds, and then they will become important.
Even though the increase is bad enough when considered on its own, there are two things to weigh up with this latest in a long succession of tax increases from the present Labour government.
First there is the timing of the official announcement of the increase. It came last Thursday on the final day of the Hutton inquiry into the war (no—not the war with Iraq, but the war between Labour‘s spin machine and the BBC!).
The long-standing government habit of trying to bury bad news goes on. By announcing a swingeing tax increase while the country was engrossed in the Hutton enquiry Labour no doubt hoped we would not notice.
The second thing to consider is the tax itself, and to put it into the context of a continuing barrage of tax increases year on year.
Labour came to power over half a decade ago on a promise of "No tax increases at all." Since then we have had over 60 tax rises.
Even the average schoolboy can work out that we have had a tax rise for each and every month that Labour has been in power! Quite a U-turn from a government which promised "No tax increases at all."
At this rate as Labour has perhaps another couple of years before the next election, on current form we have another 20 or so tax increases to look forward to!
Last week I wrote about government plans to cap council tax increases. Obviously Labour hate the thought of local councils being able to pay their way, but no doubt this was all another ruse to cover up a government increase in the tax on petrol.
This country is heading into real financial trouble as a result of the government being unable to pay for its spending plans. Promises made on health and education and roads are not being delivered—yet again the tax man cometh!