Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Daniel Zeichner Excerpts
Tuesday 21st May 2019

(5 years, 6 months ago)

Commons Chamber
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Daniel Zeichner Portrait Daniel Zeichner (Cambridge) (Lab)
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10. What assessment the Government have made of the environmental effect of freezing fuel duty since 2010.

Robert Jenrick Portrait The Exchequer Secretary to the Treasury (Robert Jenrick)
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The price of fuel has only a marginal effect on how much fuel people purchase. That means that fuel duty freezes have a limited effect on emissions. Fuel costs, however, are a major expenditure for both households and businesses, which is why this Government have chosen to freeze fuel duty for nine successive years.

Daniel Zeichner Portrait Daniel Zeichner
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That is not the view of most people who actually know about these things. This Government have gone from climate emergency to climate complacency in just three weeks. There is 4% extra traffic on the roads because of the scrapping of the fuel duty escalator. What fiscal mechanisms is the Treasury contemplating to deal with climate change?

Robert Jenrick Portrait Robert Jenrick
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I take it from the hon. Gentleman that he supports increasing fuel duty. He asks who has that opinion. Actually, most economists agree that fuel consumption is highly price-inelastic, because working people do not always have the choice to use public transport or cycle. Not everybody lives in a city like Cambridge, with excellent public transport. We support the working men and women of this country, particularly in towns and rural areas, and we have saved them £1,000 a year on their fuel bills.