Oral Answers to Questions

Anas Sarwar Excerpts

Tuesday 22nd March 2011 Commons Chamber

[Mr Gauke]

My hon. Friend is absolutely right and it is striking that the previous shadow Chancellor and the previous shadow Health Secretary said that it was madness to ring-fence the NHS. That is not the view of this Government.

[Anas Sarwar (Glasgow Central) (Lab)]

13. What assessment he has made of the effect on road fuel prices of the increase in the standard rate of value added tax.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

How much of the rise in the standard rate of VAT is passed on to consumers is a commercial decision for retailers.

[Anas Sarwar]

I thank the Minister for that answer. Treasury Ministers are very wrong to suggest that the calls to scrap the VAT increase on fuel is illegal and unworkable. There is precedent for it: the French President recently got a derogation from EU laws for French restaurants. Will this Government stand up for UK families who have been hard hit by the rise in fuel costs and look for derogation powers on fuel duty?

[Mr Gauke]

A week ago, the shadow Chancellor was saying that we needed an immediate cut in the tax on fuel and now the Labour party is saying that we should start a process that will take about seven years. That does not strike me as being terribly helpful.