If HM Treasury is getting so much extra money from high oil prices, why don't they lower taxes?

to help stimulate the economy.If HM Treasury is getting so much extra money from high oil prices, why don't they lower taxes?
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common sense and politics bad mix!If HM Treasury is getting so much extra money from high oil prices, why don't they lower taxes?
Contrary to popular perception, the Government is not getting so much extra in tax, for two reasons, the first is that there is no extra fuel duty just the extra VAT on the pump price so an additional 30p per litre at the pump only 4p is extra tax to the revenue, and the second is that high prices mean people are starting to use less, so the total revenue may actually be going down.





The second aspect is that the Government actually want you to have less money in your pockets, as this will lower inflationary pressure elsewhere in the economy. The idea is that a little pain shared equally will prevent wholesale collapse in one area that then cascades into a full scale recession.





Bear in mind that despite the credit crunch, fuel prices, house prices and the rest, the economy is still actually growing, slowly, but still growing overall, so it does not need stimulating.
Because they've overspent in other areas, and there are problems on many fronts:





Spending has generally been at a higher level than budgetted.


Then they made a c()ck-up out of the 10p tax issue, which cost them a fortune to wriggle out of to save their 'political face.'





The US$ being weak, has made the pound stronger, even though it shouldn't be, which has made our exports more expensive.


Ditto - USA tourists can't afford to come here and spend their $.





Inflation is rising sharply, which will affect many aspects of economy, but basically will result in less income for Chancellor and more costs, unemployment benefit for example.





We not technically in recession yet, but we are heading that way.





Plus we have two wars to pay for. They're not cheap, and it's 'wasted money.' It's like setting fire to money. It's not like investing it in schools, libraries or hospitals where you have some tangible benefit.





Tax reductions are extremely unlikely. They are probably going to be borrowing more money, to avoid raising taxes anymore, but they won't put them down.
sumo_uk1967 says the Government ONLY get an extra 4p in tax ... mate, that's per litre - might be worth firing up the calculator to work out what that really means!





Why don't they lower taxes? Simple, so many things have gone wrong e.g. they taxed tobacco so the smokers stopped (they didn't expect that!), they taxed alcohol so the drinkers cut down (they didn't expect that) and they planted more cash cow Gatso's and the motorist slowed down (they didn't expect that) so Mr Brown shot himself in the foot because all his plans worked and he got less income from all of them!!





The only remaining option was to rake a bit more off the fuel (and blame the credit crunch (last time round it was called recession).





So, in answer to the question He can't afford to!
Yes, there is a global credit 'crunch' but many countries are handling it better than our Muppet Government are. People should remember that Labour governments have a 'tax and spend policy' and always have had it's part of their dogma. People like Brown have never had any experience of running a big company and in any case he (Brown) believes he like the Pope is infallible !.
Because their skint and need to pay the wages of all these public sector non-jobs that they've created, plus financing the 8 million non productive people in our society. Remember the unemployment figure is realistically about 5 million, the other 3 million are on the sick.
This Government cut taxes? How would they then pay for MPs' expenses, and all the welfare benefits they have introduced as vote-catchers?
because the have to find the money to take care of the twelve thousand a day that are pouring over our borders from all over the world.
A good question!Gordon Brown has got the British Nation into so much debt and made that many promises to African dicatators!He just cannot move!'Another fine mess you have got us into'!Gordon!!
Because gordon has to pay for an 8 course meal somehow.
Because Gordon Brown wants to give more money to those people who don't want to work. He thinks they love him.
You are JOKING, Kill the goose that's laying platinum eggs. Not until hell freezes over.
they want more.get rid of the poll-tax.look how much money would be in our pockets to spend.