Fuel Tax Protests

Jonathon Porritt, 2nd June 2008, Forum founders

This all feels very much like one of those periodic crunch moments for the sustainability agenda. Fuel-tax protests. Rebellious backbenchers. The kind of febrile atmosphere we last saw in 2000. The Tory press on the war path. NGOs winding themselves up: “Stay green, Gordon, don’t be yellow”.

In 2000, the price of fuel was heading sharply upwards – not as sharply as today, but very uncomfortably. A motley consortium of some of the worst affected citizens (road haulage firms, farmers etc) took to their trucks and their tractors and blockaded key oil facilities in protest against the fuel tax escalator – a Conservative innovation which Labour was quite happily rolling on with. Within a few weeks, the Treasury caved in and agreed to decommission the escalator.

On the face of it, a minor blip. But a strong case has been made since then that it was this one setback that put paid to Treasury’s enthusiasm for the sustainability agenda. Ministers blamed both NGOs for not having come to their aid and the media for having hyped the whole thing into a massive crisis. The image of ‘Mondeo Man’, feral and unforgiving, was on display, virtually, the length and breadth of the Treasury’s corridors of impotence.

Roll forward eight years. It’s all stacking up again, with campaigns both to defer the projected increase in fuel taxes for the second time, and to reverse decisions announced in the budget on increases and vehicle excise duty. Ministers are ‘listening’; U-turns are widely anticipated.

And would that be so awful? Focussing for now on fuel taxes, just stand back for a moment. The essence of using fiscal instruments to change corporate and consumer behaviour relies on three things: transparency (so that people know what’s coming down the track at them); fiscal neutrality (so as not to piss everyone off by using green taxes primarily to increase revenues); and fairness (so that the less well-off in society are not further disadvantaged).

On those three counts, given the dramatic increases in the price of petrol and diesel over the last couple of years, everyone has been taken by surprise by the price hikes, apart from ‘Peak Oil’ campaigners (who have been telling us this was about to happen for years).

Moreover, the less well-off are being disproportionately hammered, and the hikes in fuel taxes are far from fiscally neutral and never have been.

So, economically, socially, ethically, what are the implications of all that?

Your thoughts really welcome.

Read more from Jonathon Porritt's blog at www.jonathonporritt.com

Comments

It just seems like we need

It just seems like we need to look for another source of energy. Oil is going to run out eventualy! Complaining doesn't help much because the governments of oil-exporting countries rely on this income for their own economies. Food and beer prices are rising as well. Ethically I wouldn't say this is 'right' but with eyes turned toward that capitalistic West that is just what happens.