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The Irish Sun
18-07-2025
- Automotive
- The Irish Sun
Fury after motorists paid more than £20billion in VAT last year just to buy and run cars
MOTORISTS paid more than £20billion in VAT last year just to buy and run cars — making it one of the biggest taxes on driving. Figures show consumer spending on vehicles hit £137billion in 2024, the third highest on record. Advertisement That generated £22.8billion in VAT for the Treasury, almost matching the £24.6billion raised from fuel duty. But £14.9billion of that fuel duty came from diesel, which is mainly used by haulage firms — not everyday drivers. Meanwhile, tax receipts from Vehicle Excise Duty are around £8billion a year. AA president Edmund King said: 'There's a threat of increased motoring taxation as the Chancellor seeks to balance the books. Advertisement "But the latest Office for National Statistics consumer spending statistics reveal the hidden tax take from private motorists.' He added: 'The danger of ramping up motoring costs is that it affects individuals and businesses — and ultimately fuels inflation.' His warning came as fears mounted that Chancellor Rachel Reeves is considering a fuel duty hike in her next Budget to cover the cost of reversing welfare cuts. The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 — saving drivers thousands. Advertisement Most read in Motors Exclusive Reform UK's Richard Tice said: 'These figures show drivers are being clobbered with a stealth tax bill worth billions. 'With VAT raking in more than fuel duty, the idea of hiking it further is a disgrace. Labour must commit to freezing fuel duty — anything else would be a kick in the teeth for working people.' Drivers forced to pay new 'Doomsday' fee every day under July plan - it's already in effect depending on where you park_1 A Treasury spokesman said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to fix up to seven million extra potholes.' Treasury Minister James Murray refused to comment on Labour's tax plans yesterday. Advertisement He told Sky News: 'There's lots of speculation about lots of different tax measures, and I'm not going to get into that.' 1 Motorists paid more than £20billion in VAT last year just to buy and run cars


Scottish Sun
18-07-2025
- Automotive
- Scottish Sun
Fury after motorists paid more than £20billion in VAT last year just to buy and run cars
It comes as fears mount Chancellor Rachel Reeves is considering a fuel duty hike in her next Budget STEALS ON WHEELS Fury after motorists paid more than £20billion in VAT last year just to buy and run cars Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MOTORISTS paid more than £20billion in VAT last year just to buy and run cars — making it one of the biggest taxes on driving. Figures show consumer spending on vehicles hit £137billion in 2024, the third highest on record. Sign up for Scottish Sun newsletter Sign up That generated £22.8billion in VAT for the Treasury, almost matching the £24.6billion raised from fuel duty. But £14.9billion of that fuel duty came from diesel, which is mainly used by haulage firms — not everyday drivers. Meanwhile, tax receipts from Vehicle Excise Duty are around £8billion a year. AA president Edmund King said: 'There's a threat of increased motoring taxation as the Chancellor seeks to balance the books. "But the latest Office for National Statistics consumer spending statistics reveal the hidden tax take from private motorists.' He added: 'The danger of ramping up motoring costs is that it affects individuals and businesses — and ultimately fuels inflation.' His warning came as fears mounted that Chancellor Rachel Reeves is considering a fuel duty hike in her next Budget to cover the cost of reversing welfare cuts. The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 — saving drivers thousands. Reform UK's Richard Tice said: 'These figures show drivers are being clobbered with a stealth tax bill worth billions. 'With VAT raking in more than fuel duty, the idea of hiking it further is a disgrace. Labour must commit to freezing fuel duty — anything else would be a kick in the teeth for working people.' Drivers forced to pay new 'Doomsday' fee every day under July plan - it's already in effect depending on where you park_1 A Treasury spokesman said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to fix up to seven million extra potholes.' Treasury Minister James Murray refused to comment on Labour's tax plans yesterday. He told Sky News: 'There's lots of speculation about lots of different tax measures, and I'm not going to get into that.'


The Irish Sun
04-07-2025
- Automotive
- The Irish Sun
Hard-pressed Brits face MORE misery at the pumps as fears mount Rachel Reeves will hike fuel duty
DRIVERS already hammered by soaring motoring taxes could face fresh pain at the pump with a fuel duty hike. Top Tory Dame Priti Patel said a hike would mean a 'betrayal of working people'. The AA says motorists are already being squeezed, with Vehicle Excise Duty rising by £30 since 2022, plus millions more paid in parking charges, tolls and congestion fees. AA boss Edmund King also warned any rise at the pumps 'could be catastrophic' for the UK economy. He added: 'The added danger is increased duty simply fuels higher inflation. The strong message to the Chancellor is 'keep it down'.' READ MORE ON FUEL DUTY The AA says motorists are already being squeezed from all sides, with Vehicle Excise Duty jumping from £165 to £195 since 2022, and millions more paid in parking charges, tolls and congestion fees. Drivers of older cars, including popular models like the Ford Fiesta and VW Golf, also face a £160 tax hike when they are eventually forced to upgrade to newer vehicles. The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 - saving drivers thousands but ministers are under pressure to find cash after billions were pledged to reverse planned welfare cuts. A Treasury spokesperson said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to end the pothole plague by fixing up to seven million extra potholes.' Most read in Motors Pressed on whether she would raise taxes, Reeves said: 'Of course there is a cost to the welfare changes that parliament voted through this week and that will be reflected in the budget. 'But I'm also very, very clear that [the] stability that we've been able to return to the economy, which has enabled the Bank of England to cut interests rates four times, is only possible because of the fiscal discipline which is underpinned by the fiscal rules. Never Mind The Ballots Fuel Duty Debate "And we'll be sticking to those because they're absolutely vital for the living standards of working people and also the costs that businesses face.' 1 Hard-pressed Brits could face a fuel duty hike after Labour's welfare U-turn


Scottish Sun
04-07-2025
- Automotive
- Scottish Sun
Hard-pressed Brits face MORE misery at the pumps as fears mount Rachel Reeves will hike fuel duty
AA boss Edmund King also warned any rise at the pumps 'could be catastrophic' for the UK economy TAKING US FOR FUELS Hard-pressed Brits face MORE misery at the pumps as fears mount Rachel Reeves will hike fuel duty DRIVERS already hammered by soaring motoring taxes could face fresh pain at the pump with a fuel duty hike. Rachel Reeves is understood to be 'considering everything' at the next Budget after her welfare U-turn — prompting fears for motorists. Advertisement Top Tory Dame Priti Patel said a hike would mean a 'betrayal of working people'. The AA says motorists are already being squeezed, with Vehicle Excise Duty rising by £30 since 2022, plus millions more paid in parking charges, tolls and congestion fees. AA boss Edmund King also warned any rise at the pumps 'could be catastrophic' for the UK economy. He added: 'The added danger is increased duty simply fuels higher inflation. The strong message to the Chancellor is 'keep it down'.' Advertisement The AA says motorists are already being squeezed from all sides, with Vehicle Excise Duty jumping from £165 to £195 since 2022, and millions more paid in parking charges, tolls and congestion fees. Drivers of older cars, including popular models like the Ford Fiesta and VW Golf, also face a £160 tax hike when they are eventually forced to upgrade to newer vehicles. The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 - saving drivers thousands but ministers are under pressure to find cash after billions were pledged to reverse planned welfare cuts. A Treasury spokesperson said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to end the pothole plague by fixing up to seven million extra potholes.' Advertisement Pressed on whether she would raise taxes, Reeves said: 'Of course there is a cost to the welfare changes that parliament voted through this week and that will be reflected in the budget. 'But I'm also very, very clear that [the] stability that we've been able to return to the economy, which has enabled the Bank of England to cut interests rates four times, is only possible because of the fiscal discipline which is underpinned by the fiscal rules. Never Mind The Ballots Fuel Duty Debate "And we'll be sticking to those because they're absolutely vital for the living standards of working people and also the costs that businesses face.' 1 Hard-pressed Brits could face a fuel duty hike after Labour's welfare U-turn


Scottish Sun
16-06-2025
- Business
- Scottish Sun
Hard-pressed drivers ‘MUST be spared fuel duty hike as tensions in Middle East push up global oil prices'
Read on to find out what many MPs fear Rachel Reeves has planned for drivers FUEL FEARS Hard-pressed drivers 'MUST be spared fuel duty hike as tensions in Middle East push up global oil prices' Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) DRIVERS must be spared a fuel duty hike as tensions in the Middle East push up global oil prices, MPs have warned. New figures show petrol prices rose to 132.1p a litre yesterday, threatening to end a three-and-a-half month run of falls. Sign up for Scottish Sun newsletter Sign up 3 Drivers must be spared a fuel duty hike as tensions in the Middle East push up global oil prices, MPs have warned Credit: Getty 3 Fears are growing Chancellor Rachel Reeves could look to scrap the 5p duty cut to shore up the public finances Credit: Getty Wholesale costs have already surged 3p a litre in a week and are still rising. The AA says the spike is being fuelled by conflict between Israel and Iran plus surging demand from the US summer motoring season. Now fears are growing Chancellor Rachel Reeves could look to scrap the 5p duty cut to shore up the public finances. Tory MP Saqib Bhatti said: 'As she struggles to make her accounts balance, Rachel Reeves needs to be clear she won't be hammering motorists to fill the black hole that she has created.' Labour MP Graeme Downie added: 'The Chancellor said in the spending review she wanted to do everything she can to keep money in people's pockets. 3 The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 'At a time of volatility, that means keeping fuel duty as low as possible.' The Sun's Keep It Down campaign has helped freeze fuel duty since 2011. A Treasury spokesman said: 'Our Plan for Change is putting more money in the pockets of working people. 'We extended the fuel duty cut this year, saving drivers £3billion.'