Douglas Carswell's Blog

What to do about fuel duty?

Localise it.

Today we hear that George Osborne might delay the increase in fuel duty.  Given that petrol prices are climbing ever higher, and that most of what people pay to fill up the tank is tax, you can understand why folk might not take too kindly any hike in duty.

So why not allow each county and metropolitan council to keep fuel duty receipts in their area?  In return for the extra revenue, they could have a reduction in their central government grant, making it revenue neutral for HM Treasury.

It would be cheap and easy to collect in this digital age.  Because it would go to pay for local services, rather than disappear into Whitehall coffers, it would have more legitimacy.

And if councils could vary the rate, we might even get tax competition - and one day, lower rates.  

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