The government is worried about the persistent inflation rate in this country, at a time when we really need to cut interest rates to stimulate the economy and take some of the pressure off borrowers.
It has the answer to the problem under its own influence, as much of the high inflation rate is coming from public sector taxes and prices. Today we hear of the campaign to resist the 2p extra tax the government is proposing this April on petrol and diesel. This follows a totally unnecessary extra 2p on fuel last autumn.
These increases are vengeful against motorists and hauliers. The government’s tax take on fuel has soared anyway, thanks to the big increases in market prices which gives the government more revenue automatically from the ad valorem tax. If the government still believes fuel burn by travellers is the only part of the carbon dioxide problem it wishes to curb, it should recognise just how far its taxes and the Middle East oil situation have jacked prices up. People now need to be given time to adapt, to buy their more fuel efficient vehicles and scrap the older ones. They cannot afford to change their vehicles because the government is squeezing them too much, and they cannot afford the sky high train fares either.
Unfortunately the government is utterly desperate: it has totally run out of money and public sector borrowing is well over half a trillion pounds and that doesn't include most of the PFI or public sector pension liabilities, which are kept off the books (although it was Gordon who forced private companies to declare pension liabilities onto their profit/loss acounts, a move that simultaneously fucked numerous companies' share price and the pension market).
The wheels are falling off and the Gobblin' King knows it...