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Truss considers 5% cut in VAT  

A 5-point cut would cost the taxpayer £38 billion to keep in place for one year, the Telegraph said, citing analysis by the Institute for Fiscal Studies. It may also reduce inflation temporarily by around 2 points…reports Asian Lite News

Liz Truss is considering cutting VAT sales tax by as much as 5 percentage points across the board, the Telegraph reported, a move that may head off criticism she lacks a plan to tackle the country’s cost of living crisis.

The potential reduction to 15%, flagged in a newspaper that has strongly backed her leadership campaign against Rishi Sunak, represents something of a change of tack by Truss.

With the contest entering its final week — there’s one hustings remaining in London on Wednesday — Truss is favored to win the backing of Conservative Party members and become Britain’s prime minister.

The reduction in the value added tax headline rate would be the largest ever and may save the average household more than £1,300 ($1,527) a year, according to the Telegraph. It could protect businesses from failing and may be accompanied by additional measures to help the most vulnerable pay their energy bills, which are set to almost triple this winter from a year earlier, the newspaper said, citing officials.

“Colossal sums” have been comitted to help people pay their bills and the next government is set offer more help with another huge package of financial aid to be announced next month, outgoing Prime Minister Boris Johnson said in an article published in the Mail on Sunday.

The Treasury will also present the next prime minister with plans modeled on former Prime Minister Gordon Brown’s response to the 2008 financial crisis as part of a series of options to offset soaring energy bills, according to the Telegraph.

A 5-point cut would cost the taxpayer £38 billion to keep in place for one year, the Telegraph said, citing analysis by the Institute for Fiscal Studies. It may also reduce inflation temporarily by around 2 points.

Another suggestion being considered by Truss’s camp would be to raise the personal allowance, that allows people to earn £12,570 a year before they start paying tax, ahead of Treasury’s schedule, the Times reported.

Others in her team have proposed raising the threshold at which workers start paying the higher rate of income tax which stands at £50,270, according to the newspaper.

ALSO READ-Truss tipped to prevail as PM race nears end

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-Top News London News

COST OF FILLING CROSSES 3100

Rising petrol prices are putting pressure on household budgets, with energy bills and food prices also now at multi-year highs…reports Asian Lite News

Britain’s leading motoring forums urged the government to step into control the rising fuel prices.

The RAC motoring group called it “a truly dark day” as the cost of filling a 55-litre tank reached £100.27 for petrol and £103.43 for diesel. The RAC and its rival the AA urged the chancellor to cut VAT on fuel or to reduce fuel duty further.

Rising petrol prices are putting pressure on household budgets, with energy bills and food prices also now at multi-year highs, BBC reported.

Pump prices began to soar after Russia’s invasion of Ukraine in February led to oil supply fears. However, there are concerns that petrol retailers are not passing on a recent 5p cut in fuel duty to consumers.

According to the RAC, the average pump price of a litre of unleaded petrol is now 182.31p while for diesel it is 188.05p. However, the motoring group has warned this could rise to over £2 a litre soon. The Treasury said it had provided £37bn to ease the cost of living already.

TIPS TO BEAT THE FUEL PRICE HIKES

As households across the UK brace themselves for the impact of the cost-of-living crisis, CarStore’s Personal Advisors offer some tips to follow in order to improve fuel economy.

Mark Akbar, Managing Director at CarStore, said: “There are many different techniques and habits you can incorporate into everyday driving that will have a positive impact on your vehicle’s fuel economy. Try following even just a few of CarStore’s tips and tricks below and you may be pleasantly surprised just how much difference a change in driving style and habits can make to the miles per gallon you’ll achieve.”

Check your tyres & Tyre Pressures

One of the biggest factors in terms of fuel economy is the performance of your tyres – they are, after all, the only thing that connects your vehicle to the road. Having your vehicle’s tyres inflated to the correct pressures has a significant impact on your vehicle’s fuel economy. Under-inflated tyres can have a detrimental effect on your mpg by as much as -2.5%.

Always anticipate

Simply anticipating what is likely to happen in front of you when driving will greatly improve your efficiency as well as reduce wear and tear on your car’s brakes.  While maintaining your focus on the vehicle directly in front of you, take the time to look further ahead to see what’s going on. If there’s a red light, try to lift off the accelerator  a little earlier than you might normally, without taking it to extremes of course. If the lights change, you’ll still be rolling and you’ll spend less time getting up to speed, using less fuel in the process. Simply put, the less time you spend with your foot on the accelerator, the less fuel you will use.

Accelerate and Decelerate Smoothly

When the lights turn green, don’t stamp on the accelerator and get up to speed as fast as physically possible. Accelerate briskly but smoothly, reaching the desired speed in a reasonable time frame so as not to frustrate your fellow road users behind you. Don’t wait until the last minute to come to a standstill either, lift off the gas nice and early and brake gently until you come to a stop.

Remove Excess Weight

The heavier your car is, the more fuel it will use trying to get from A to B, so anything you can do to make it lighter will save you money. Roof boxes and bike racks are the main culprits, but simply having a good clear out of what’s in the backseat and the boot can have a positive impact as well.

Check Your Speed & Use Cruise Control

Always being mindful of the speed you’re travelling at is good, safe practice anyway, but it can help in terms of fuel economy too. Motorists should adhere to speed limits at all times so as they aren’t breaking the law, but saving money is another solid reason to do so. For instance, travelling above the national speed limit at 80mph instead of 70mph will use an extra 10% of fuel, as well as cost you extra money in speeding fines too. Cruise control only helps the situation too. Slowing down and speeding up increases fuel usage in a big way, so letting the car maintain the exact cruising speed for you whenever possible is simply the most efficient way to get around.

Use Your Gears Properly

It’s not part of the driving test to learn how to use your gears efficiently, you simply have to be able to use them to get the car to move at various speeds. However, to make the most out of every drop of fuel and maintain maximum efficiency, it’s vital that you’re always using the right gear at the right time. Be careful not to over-rev the engine, as this will use more fuel, and make sure you don’t labour the engine by being in a gear that’s too low for the speed and terrain. Generally, petrol cars are at their most economical between 1500 and 2500 rpm, so you should aim to change up to the next gear whenever you exceed the higher end of that band. For diesels, it’s between 1300 and 2000 rpm.

Service & Maintain Your Car

Ensuring that your vehicle is in tip-top mechanical shape is vital when making sure that fuel economy is as good as it can be. A car that has its engine serviced regularly and in line with service schedules using the correct parts, fluids and lubricants will work better and be more efficient than one that isn’t. It’ll be more reliable too. Wheel alignment (also known as tracking) can also have a negative effect on fuel economy too, and it can be knocked out by something as simple as a pot hole in the road, so make sure you get it checked regularly.

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