(2 days, 9 hours ago)
Commons ChamberMy right hon. Friend raises an incredibly important point. It is not just those who have a car who will be paying for this policy—although they will be paying the most—and it is not just those who rely on a van for their business or work to get around who will be paying; everyone will be paying, whether they use the bus or are just going to the shops. The truth is that everything has to be transported by road in this country. This tax rise will have huge inflationary pressures right across the board, not just for fuel, whether for heating or for road transport, but, as he is right to say, for so many other areas—areas that have not even been considered by the Treasury.
All my right hon. Friend’s arguments stand, and that was true before the war in Iran. The Prime Minister stood there on Monday saying that the freeze is still in place, but the world has literally changed around us. Does my right hon. Friend share my concern that this Government are not being reactive and following the change? There will be a big impact and a knock-on effect, and the Prime Minister is touting this policy as though it is new, when it was in the Budget last year.
My hon. Friend makes an important point. He will be aware that when the fuel price goes up, the Government’s VAT revenues from fuel go up at the same time. They are already seeing hundreds of millions of pounds a year extra in VAT, purely from the fact that the underlying price has gone up. My hon. Friend makes another important point, which is that this is a moment for the Government to reconsider. We on the Opposition Benches opposed this measure at the Budget, because we thought hitting working families was the wrong thing to do, but it is doubly the wrong thing to do when prices are also going up internationally.
The hon. Lady raises an important point. As she suggests, the tax revenues from reopening the North sea for oil and gas could be spent in a number of ways, but we have to open the North sea—a cost-free and environmentally positive alternative—to obtain those revenues, and then we can consider all the different ways in which Members across the House would want to spend the money.
Since the Labour Government came to office, we have seen just how much they have hit transport across the country. The fuel duty rise of 5p a litre is just the latest example. First they abolished the much-loved £2 bus fare cap, which the Conservatives had pledged at the general election to continue for the entirety of this Parliament: they have put bus fares up by 50%. They have also jacked up airport business rates, by a staggering average of 295%. Who is benefiting from that? Certainly not passengers, certainly not the airlines, and certainly not British business. They have also raised air passenger duty, with passengers facing a 15% jump in one year alone, followed by permanent increases, year after year after year, of between 3% and 4%, just to get on to a plane.
In the last few weeks the Government have raised the price of railcards for the first time since—[Interruption.] Perhaps they would like to chunter about this one. Do you remember this one, guys? We hear nothing from them on this. They have raised those prices for the first time since 2013—the first time for more than 10 years. They have increased the price of senior railcards, veterans’ railcards, young people’s railcards. New taxes on people throughout the country are being raised by this Government. We are seeing a 16% rise for the first time since 2013, and they did not even know about it, because they do not care about young people, about old people, about those who are being affected by the tax rises that will be hitting people all over the country from September onwards.
Labour has also just introduced a new policy that will leave ferry passengers on the Isle of Wight facing bigger crossing charges: £30 more per crossing. That will hit family holidays in the UK, and it will hit people from the Isle of Wight who are just trying to go about their daily lives. Labour is stealthily—
(1 year, 1 month ago)
Commons Chamber