Rural Fuel Duty Relief

David Chadwick Excerpts

Wednesday 7th January 2026 Westminster Hall

[Ian Roome (North Devon) (LD)]

I beg to move,

That this House has considered the Rural Fuel Duty Relief scheme.

It is a pleasure to serve under your chairship, Ms Furniss. I am pleased to have the opportunity to introduce this debate, especially in the new year at a time when many people across the country will be watching the pennies closely.

As hon. Members representing rural constituencies will be aware, the rural fuel duty relief scheme was announced more than 15 years ago and supports people living in some of the most remote rural communities in Britain. Under the scheme, a 5p per litre tax relief on unleaded petrol or diesel is granted to specific filling stations in a small number of rural postcode sectors. That relief must be passed on to rural motorists, helping many with their commute, school run or weekly shopping. The scheme benefits around 125,000 local residents and many visitors across the United Kingdom.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

Not a single part of Wales benefits from the rural fuel duty relief scheme, while rural areas in England and Scotland do, simply because of how the previous Conservative Government designed it. Does my hon. Friend agree that that unfair anomaly should be corrected and that the scheme should be extended to places such as Powys?

[Ian Roome]

I agree with my hon. Friend that more people could benefit from the scheme. I am sure the Minister will take note of that in his response. As I said, the scheme benefits around 125,000 local residents and many visitors across the UK, including the remote parts of the Scottish islands, Cumbria, Northumberland, North Yorkshire, the Isles of Scilly and Exmoor. That includes residents in my constituency of North Devon, who live in areas around Lynton and Lynmouth, Parracombe and Brendon, including many living in upland areas within the boundaries of Exmoor national park.

The tax relief is targeted at highly rural areas. A brief glance at a map shows that these are some of the most isolated and indispensable filling stations across the country. If someone forgets to fill up at Barbrook filling station in my constituency, while heading out over Exmoor, it is nearly 20 miles to the next fuel stop at Wheddon Cross or Minehead. When the rural fuel duty relief scheme was introduced under the coalition, and approval under EU state aid rules was granted in 2012, the relief was set by the Government at 5p per litre. That 5p per litre remains unchanged today in 2026, despite more than 30% of its purchasing power being eroded over that time because of inflation. An update to the scheme is now long overdue.

According to research by the Rural Services Network in 2023, transport difficulties in highly rural areas force households into paying high costs for motoring, which contribute significantly to rural poverty. A car is needed for daily life and for someone who earns a modest wage that is expensive. The research estimates that for every 10% decrease in public transport speed relative to motoring in any area, the average household pays more than £400 more for transport each year.