Fuel Duty Debate

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Department: HM Treasury

Fuel Duty

Lindsay Hoyle Excerpts
Monday 12th November 2012

(11 years, 5 months ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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I inform the House that the amendment in the name of the Prime Minister has been selected.

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Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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On the day that the International Energy Agency has warned that two thirds of fossil fuels need to remain under the ground if we are to avoid catastrophic climate change, does the hon. Lady not see a contradiction in arguing for lower fuel prices, especially since the cost of motoring has fallen in the past 10 years while the cost of public transport has risen? Would a more consistent position not be to seek to support struggling households directly, using the money—

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. The hon. Lady is testing the patience of the House. It is unfair. We are going to have to introduce a time limit already. If she wishes to speak, would she please put her name down? She cannot make a speech now. Short interventions are needed on both sides

Cathy Jamieson Portrait Cathy Jamieson
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I gave way because I respect what the hon. Member for Brighton, Pavilion (Caroline Lucas) has to say, but I hope she will understand the real pressures on families and the pressures that individuals are facing as they try to get to work and go about their business.

It is not just Labour that is calling for the increase to be postponed. FairFuelUK, backed by the RAC and the Road Haulage Association, among others, has consistently and determinedly campaigned for lower fuel duty.

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Sajid Javid Portrait Sajid Javid
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If the hon. Lady is patient, I will give way in a moment—[Interruption.]

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. I do not need an answer back; I am just saying that the hon. Lady does not need to keep jumping to her feet. The Minister has promised to give way, but I do not know whether he is giving way now.

Sajid Javid Portrait Sajid Javid
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Not yet.

The hon. Lady does not want me to tell the House what the Labour Government did when they looked at this tax loophole. They declared:

“The Government has considered all the consultation responses and believes that on balance the negative effects of changing existing legislation outweigh the benefits"

To address just this issue, this Government have already strengthened HMRC's enforcement and compliance teams, and protected tens of millions of pounds of revenue. So the nub of today's debate is a call to clamp down on avoidance of a relief that the Opposition declared they could do nothing about, to pay for a cut in fuel duty that they supported. Mr Deputy Speaker, you couldn't make it up.

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None Portrait Several hon. Members
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rose—

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. I remind Members that the time limit on speeches is seven minutes.

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Alison Seabeck Portrait Alison Seabeck (Plymouth, Moor View) (Lab)
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I thank the hon. Gentleman for acknowledging that the Opposition motion openly states that there is a fragile economic recovery. Will he do likewise and acknowledge that there was a fragile economic recovery in June 2010?

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Before the hon. Gentleman answers that question, I remind hon. Members that, if they intervene, and if they drop down the speaking list, they will understand why—they keep adding minutes to the debate.

Ben Gummer Portrait Ben Gummer
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I thank the hon. Lady for her comment, because it helps me to remind her that, when Britain was in recession at the back end of 2008, fuel duty went up by 2p. When it was in recession at the beginning of 2009, fuel duty went up by 2p. When it was in recession in September 2009, fuel duty went up by 2p. When there was a faltering recovery—which was probably credit fuelled—in March 2010, on the eve of an election, at the point when the figures showed that the economy was recovering, fuel duty went up by 1p. So much for the correlation between recession and fuel duty increases.

Lindsay Hoyle Portrait Mr Deputy Speaker
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Order. Those who think they are bottom of the list will also have minutes removed.

Bill Esterson Portrait Bill Esterson
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I am always happy to be guided by you, Mr Deputy Speaker. I wonder whether the hon. Gentleman is aware of the research—

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Alison Seabeck Portrait Alison Seabeck
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The hon. Gentleman speaks from the experience of his own constituency, and the Chancellor will need to consider that very serious point when he sets out his Budget later this year.

There has also been a huge increase in housing costs. Average house prices are now 11.5 times higher than the median income, and private rents are set to rise by an estimated 65% over the next 10 years. That will create huge cost of living issues for people in my constituency. Road fuel prices are higher by about 2.1p a litre in rural areas and, on average, people who live in rural areas travel 53% further than those who live in urban areas. They are also less able to access public transport alternatives. In my area, there are poor rail services down to Plymouth and we have no airport. All those factors push people into cars, and rises in the price of fuel make it extremely difficult for our economy and the economies of individual families to thrive.

I shall finish my speech early because you pulled me up for intervening, Mr Deputy Speaker. I hope that the Chancellor will have listened to his colleagues on the Government Benches, and that he will also take seriously those on the Opposition Benches as we go through the Lobby tonight to make it absolutely clear that we need a temporary halt to the increase.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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I should just like to point out to the hon. Lady that she has not given me back a minute, because she has taken an intervention. So we ended up with nothing!