This is a Bright Britt series post.
Britain is an island country. Everything have to be brought into the country by truck, boat or airplane. Britain is also in financial trouble.
Not due to becoming part of the European (that can only help Britain) but because of their own stupidity.
Starting Jan 4 2011 Britain raised the sales tax from 17.5% to 20%. (yeah, in a struggling economy). They have also increased the tax on the fuel. Wow. (yeah, in a struggling economy). This fuel price increase will cost them millions of pounds in lost revenue per year. (and billions on the long run). I am not even mentioning the loss of jobs. Several hundred thousands in about 5 years. Why? Because of the above mentioned reasons. It’s an island country and everything have to be brought in by vehicles that use fuel.
Those vehicles are coming mainly from Europe where the fuel prices are much cheaper. Many english registered trucks and airplanes are going to Europe and to other countries where the fuel prices are much lower. All those vehicles are fueling up elsewhere putting their money into the pockets of other countries.
You are looking at a truck that has a 400-1200 liters fuel tank. (about 100-300 gallons) Fueling up in another country. Multiply that by about roughly 1000 trucks per day. Multiply the number of short distance air planes that flies in and out of Britain several times per day. Like Easy jet, Ryan Air, Wizz Air. They all fuel up in one of the European Union countries where the fuel is much cheaper.
At the same time, unemployment in the country is growing. Not due to being part of the European Union, but because of the high taxes and rigid centuries old regulations. They are not keeping in step with modern times and changes.
In the USA when times are tough they lower taxes and come up with programs that helps the economy to recover fast. They are in effect the leader in business because of this attitude.
In Britain they do the opposite. Increasing taxes and bringing more rigid regulations. If I am selling something to a store that is struggling. Now I raise my price, would that store buy from me, or would they’ll be looking to buy from someone else? Same thing. Those that can fuel up somewhere else and the poor, that have to buy locally, will spend less and use their vehicles less.
A liter of fuel in Britain right now is around £1.30 per liter. (about $9 dollars per US gallon) The actual cost of the fuel is (retail price at the pump without government tax) £0.45 the rest is tax! Figure it out for yourself. Amazing huh?
In Europe that same fuel is about 30 percent cheaper.
The food prices in the stores went up about 30% during the past 12 months. Literally about 30% The wages remained the same. Think about it. Where is it gonna lead to? Yep, More job losses.
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