Yes, I know that people like Compass have been shouting for this and yes, I know that I said it was stupid when they did. So I\’m still going to say it\’s stupid when it\’s a Tory that implements it:
The Chancellor announced a £2 billion-a-year windfall levy on North Sea oil to fund an immediate cut in fuel duty of 1p per litre. He also postponed a 5p rise in fuel duty due next month and introduced a fuel price stabiliser to keep costs at the pumps down.
Windfall taxes, most especially permanent windfall taxes (for you can argue that a one off one doesn\’t change behaviour) are simply massively stupid ideas.
So, what you\’re actually saying is, oooohh, my, isn\’t this thing expensive? Which is, of course, the same as saying that there isn\’t quite as much supply as you\’d like for it to be at a price you\’d like.
And what are you going to do about this? Yes, that\’s right, you\’re taxing the excess profits of those who supply it thus making them, and possible new entrants, less likely to go and find more, so as to increase the supply and bring prices down.
This is, you\’ll have to agree, fairly stupid.
What lifts is up into the realms of rampant lunacy is that the money so raised is going to be used to reduce the price of the fuel itself: that is, to increase demand.
So, our solution to prices rising because of tight supply and increasing demand is going to be further restricting supply and increasing demand.
This was cockeyed idiocy when Compass argued for it and it\’s cockeyed idiocy now that Osborne has done it.
Why are we ruled by fuckwits?