Oral Answers to Questions

Brian H. Donohoe Excerpts

Thursday 19th April 2012 Commons Chamber

[Mrs Villiers]

I agree that electrification has general benefits, many of which would materialise if electrification on the midland main line were to go ahead. It will depend on whether it is affordable and on the assessment of competing priorities, which are also supported by communities in other parts of the country. We will take all economic issues and environmental benefits into account.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

7. What recent discussions she has had with the Chancellor of the Exchequer on the cost of fuel.

[The Secretary of State for Transport (Justine Greening)]

I have regular meetings with ministerial colleagues on a range of economic issues. The Government are very aware of the impact that high fuel prices have on people who rely on their cars. In the Budget last year, the Chancellor cut fuel duty by 1p per litre and it is now 10p per litre lower than it would have been under the previous Government’s plans. Between 2011 and 2013, as a result of that change, the Government will put £4.5 billion back into the pockets of motorists.

[Mr Donohoe]

I should say that I thank the Secretary of State for that answer, but the problem is that the tax on fuel is not just the excise. There is also a thing called VAT which has not been taken into account in the equation. In her regular meetings with the Chancellor, will the Secretary of State suggest to him that they change the formula for the price of fuel, given that VAT plays a fairly significant part in that and the problem is now at a critical stage in my constituency? People are writing to me to say that they can no longer travel to work and that they are considering giving up their employment.

[Justine Greening]

We want motoring to remain affordable and, in fact, this Government are working very hard to ensure that that remains the case. We must also ensure that we take the decisions that can get our public finances back into order. We must do that if we are to continue to be able to invest in infrastructure such as transport. One needs only to come to Transport questions to see how important the issue is to many constituencies and communities, so I can assure the hon. Gentleman that we are trying to strike the right balance. We have taken action as a Government and will continue to review the situation.