Consumer - Paying For It 2011

Consumer: £150bn

November 23rd, 2011

Consumer taxes include VAT, which increased from 17.5% to 20% in January 2011, and additional duties on products such as fuel, tobacco and alcohol.

Cut fuel tax by 1%

A sharp rise in fuel prices has hit consumers and businesses hard and cutting fuel duty would go some way to help.
Pros & Cons

PRO Cutting fuel duty will reduce the living costs of consumers, particularly those on low incomes, and benefit many businesses.

CON Reducing fuel duty when the country is in economic recovery and needs to reduce its carbon emissions may not be appropriate.
Increase tax on tobacco and alcohol by 0.1%

Increasing taxes on tobacco and alcohol will encourage people to consume less of these goods and will raise more money for public services.
Pros & Cons

PRO The health benefits of reduced tobacco and alcohol consumption will also create significant savings to the NHS.

CON Tobacco and alcohol duties disproportionately affect those on lower incomes and encourage illegal sales in these goods.
Introduce a 1% ‘unhealthy food tax’

An unhealthy food tax would raise additional public revenue and encourages improved eating habits.
Pros & Cons

PRO At a time when obesity and heart disease are on the increase the potential public health benefits could create significant savings for the NHS.

CON Such a tax would increase the cost of popular food which disproportionately affects those on lower incomes.
Reduce VAT to the previous level of 17.5%

VAT is a flat rate of tax charged on goods and services. Reducing it could increase consumer spending and boost the economy.
Pros & Cons

PRO Reducing VAT will lower living costs which helps those on lower incomes the most.

CON As a major source of revenue the reducing of VAT creates a shortfall that will need to be filled by other tax rises or cuts in spending.

Submit your own policy

Do you have a better idea for a policy? Submit it in the text field below. (You still have to select one of the above choices). All ideas will be compiled with the most popular getting published in the Youth Budget 2012.

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Consumer: £150bn

Cut fuel tax by 1%

Increase tax on tobacco and alcohol by 0.1%

Introduce a 1% ‘unhealthy food tax’

Reduce VAT to the previous level of 17.5%

Submit your own policy

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