Fuel Duty

Debate between Luke Evans and Luke Charters

Wednesday 18th March 2026 Commons Chamber

[Dr Evans]

I am grateful to the hon. Lady for pointing that out because I was the energy PPS in the Home Office at that time, so I saw exactly how that worked, what it looked like and how difficult it is to put measures in place. Let me remind her that the Conservatives made a £200 unconditional payment to anyone who could claim that they were living off grid. That is a stark difference from this Government, who have put aside £53 million for the 1.5 million people across the entire nation who use heating oil because they live off grid—£35 per person. The Government have ringfenced that money, so it will only be available to the houses that are hardest hit, meaning that most households will not get any payment at all. That is the exactly the point I am trying to make: the Government talk a good game, but when it comes to delivery, they are not doing what they say.

[Mr Luke Charters (York Outer) (Lab)]

The hon. Gentleman is making some impassioned points about heating oil. I have a simple question for him: does he believe that the war in Iran increases the cost of heating oil or not, and will he reject the escalation that the Leader of the Opposition has called for in entering that war in the first place?

[Dr Evans]

Of course the war increases the risk. The Americans chose to go into that war and that is now having an impact on all of us. The question under debate is what are we doing about that and what measures are being taken. We are discussing fuel duty, which, as it stands, the hon. Gentleman’s Government will increase in September.

I have asked the Government to talk about the framework and the trigger points. I was glad to hear from the Minister that that increase is under consideration, but we need to know when that consideration will be made and what the trigger points are, because, as I rightly highlighted, we have seen all this before in 2022. We know what it looks like and we know how difficult it is to get to the canal boats, the park homes and the people living off grid.

The fifth point that the Prime Minister made earlier this week was about de-escalation, but he has no control over that if he says that he is not involved in the war. I am all in favour of de-escalation, but that is not a domestic policy that will bring down the cost of living—nothing tangible can come from that stance.

Why does this all matter so much? I live in and represent a rural constituency that is about 85% agricultural. We sit in the very heart of England, at the centre of the logistics industry. That means that every single day men and women from across Barwell, Earl Shilton and Donisthorpe get up, drive their vans, go out and drive their lorries, and support the economy.

--- Later in debate ---

[Dr Evans]

In true style, a knight of the realm recognises my very next point, because all these policies need to be set in context. Context is important, because each Government might need to raise taxes at some point, but here we have a toxic concoction of employment rights, more red tape, business rates going up and the support around business rates being taken away, fuel duty going up, national insurance contributions going up and the minimum wage going up. Any of those in isolation might be a good idea and might need to be done for support, but taken together they run against the Government’s milestones, mantras, missions—whatever they want to call them—on growth and the cost of living.

The pay-per-mile proposals for electric vehicles have been touched on, but I would like to expand on the issue. The proposals have brought huge consternation to many of my constituents. When I raised this issue straight after the Budget, I was blown away by the number of people from across the country who contacted me after seeing my question about how the proposals would work. There are simple, fundamental questions that the Government have not set about addressing. For example, what happens in the second-hand market? Who is judging when the mileage is being done? Are we likely to have monitors in our cars? That is meant to be done at an MOT, so what happens if I sell my car six months into it? What happens if someone lives in Northern Ireland and commutes to the Republic of Ireland? Where does the tax go then? What happens if we drive to Europe? For example, many people from my constituency like to take their caravan down to France for a holiday. Where do they pay their tax? How does that work?

The proposals are having the effect of stalling growth in the electric car market. Many people are saying, “I made the choice. I wanted to do the right thing for the environment and for my family, because that was a good decision to make”, but they are now regretting that decision, and the market is stalling as a result. I ask the Government how will that impact be felt in the context of fuel duty, and where will those measures fit into the framework of a continuing Iranian war?

To close where I started, I agree that in this place we can have a difference of opinion on when it is the right time to do something. I am pleased that the Minister said that everything was under consideration. That is really important for those listening outside. After all the Punch and Judy of this place on whose policy was right, whose was wrong and what has happened before, at the end of the day it is the families in Hinckley and Bosworth who will be looking at their budgets and at the uncertainty they see on the TV, and trying to decide what they should do.

I simply ask the Minister to outline what he would consider to be a trigger point for change. Would it be a certain price value for heating oil? Would it be a certain price value for petrol? Would it be a certain duration of the conflict? None of us knows when the conflict will end. All these questions could be addressed in a framework that we learned from during our time in government. In 2022, we had to come up with support schemes from scratch.

[Mr Charters]

The hon. Gentleman is right to draw attention to that 5p fuel duty cut at the height of the 2022 Russian invasion of Ukraine, but it was too slow. Will he remind the House of the level that diesel had got to at the pump when the 5p cut came in? Was it two quid? It was far too late, wasn’t it?

[Dr Evans]

Forgive me; I would be happy to give way again if the hon. Gentleman knows what the value was at that point. I do not know what it was because at the time I was working in the Energy Department trying to help support those households who were struggling and suffering, particularly those who lived in caravan parks, static homes and canal boats, who are off-grid and suffered by the very nature of where they got their fuel. He is right to say that we have to take this in the round. I have heard the Chancellor say that multiple times. How long will this go on? The decision is under consideration. I am not asking about when the decision is made or how to make that decision. This is more about understanding at what point we make those decisions and when the Chancellor decides that it is the right time to step in. It may well be that that decision was too late and that lessons could be learned. How do we know? That is the question I am posing to civil servants and this Government, because the hon. Gentleman’s party is now in charge of setting that out and deciding when is too long and when is too late.

I would argue that the current payment of £53 million is not enough for my constituents. Many of them will not benefit, because they will not be covered by the resilience fund. What the Government have done under the resilience fund—formerly the household support fund—is simply delegate the decision making to councils. Under the previous Government, when we were in charge, we chose not to do that because we wanted to support everyone who was struggling. It is this Government’s job to set out why they are not going to do that.

I would argue that keeping the fuel duty rise in September will create a terribly difficult time for any of us who drive cars or run a business that uses vehicles. Let us not forget that the energy price cap will change in July. The Government have rightly said that it is frozen until then, but the impact on prices will not come through the system until July, so we might well see prices and the price cap rise very quickly in July just as the fuel duty is about to come in in September. We are back to the point made by the knight of the realm, my hon. Friend the Member for Bridgwater (Sir Ashley Fox) about this toxic concoction of everything happening at once. I urge the Government to be aware of that and to set out the trigger points and the framework.

Finance Bill

Debate between Luke Evans and Luke Charters

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Mr Luke Charters (York Outer) (Lab)]

My hon. Friend the Member for South Derbyshire (Samantha Niblett) has left the Chamber, but I praise her for her maiden speech. I am pleased to speak on this Finance Bill. It underpins the first Labour Budget in 14 years. It also raises the revenue that this country needs in order to recover, rebuild and renew. I will not spend ages talking about the Conservatives and the mess they have made, but—cue groans from Conservative Members—we all know about the £22 billion black hole, the mini-Budget and their reprehensible record on public finances.

However, I want to take a moment to praise the shadow Chancellor, the right hon. Member for Central Devon (Mel Stride), because I genuinely enjoyed his astronomy references. It is just a shame that he is not quite on planet Earth when it comes to recognising that we need to not only invest in public services but pay for them—the vehicle for that being this very Finance Bill. Even while this Government are tackling the Tories’ toxic inheritance, we are, through this Finance Bill, protecting payslips, when it comes to income tax and employee national insurance.

Let me get on to other key measures in the Bill that I welcome. Measures on tobacco duty, non-dom tax status and the oil and gas windfall mean that public services in my constituency of York Outer will be all the better off. Let me start by talking about the NHS. This week, I met Yorkshire Cancer Research to talk about the vital work that it does. As we discussed on Second Reading of the Tobacco and Vapes Bill yesterday, the tobacco duty increase will act as a deterrent to smoking, and it will save lives. Taken together, these measures are important to changing habits, but the tobacco duty increase will also raise extra cash to fund our NHS.

Primary care services such as the York Medical Group, which I recently visited, and York hospital will undoubtedly welcome extra investment. I certainly welcome it, as a parent who recently had to wait many hours in York A&E with a screaming toddler after a trapped finger. It is vital that we get the NHS back up and running for constituents like mine. One constituent has been waiting seven years for surgery. Let that sink in: it is half the time that the Tories were in power. I am clear that this Bill raises the revenue to put the NHS on a much surer footing.

[Dr Luke Evans]

The hon. Gentleman is a conscientious Member of Parliament, and I understand what he is saying, but does he accept that, in the words of a former Labour leader, we invest in public services with the proceeds of growth? When he stands for re-election, will he tell his constituents that he advocated for a Budget to cut growth in his country?

[Mr Charters]

That is slightly laughable, if I may say so as an affable Yorkshireman. Things like the national planning policy framework will drive growth, and some of these measures were not included in the OBR blue book. This pro-growth Government are doing so much for growth, so I find the hon. Gentleman’s question slightly perplexing.

The Bill will abolish the non-dom tax loophole and replace it with a residence-based regime. I had a look, and this change will raise £12.7 billion. Just last week, the Transport Secretary kindly visited me and the Mayor of York and North Yorkshire to announce £12.7 million of funding for our buses, which will transform our region. My quick maths shows that closing the non-dom tax loophole will pay 1,000 times more than that sum, which is the difference this Bill will make.

I will soon be having my office Christmas do. I am sure there is a joke to be made about liquid assets, but I recently visited Elvington brewery, and this Bill rightly cuts alcohol duty on draught products. That is wonderful news for our Yorkshire pubs. I need to declare an interest for myself and my hard-working team, because these measures mean that we are looking forward to enjoying a cheaper pint of the wonderfully named Fairytale of Brew York, which will be launched by Brew York over the festive period. Conservative Members back investment in our public services, but they do not support the revenue raised by this Bill. Perhaps they have been having too many fairytale economic pints.

The VAT increase on private school fees will bring in £1.7 billion a year, which will go directly to schools like those in York Outer. The Budget announced a £1 billion uplift for SEN provision and a £2.3 billion increase in the schools budget, which will make a huge difference to places like Applefields school and Manor Church of England academy.

I have also visited Askham Bryan college, a fantastic agricultural college in York Outer. Its great students, who are studying T-levels, will benefit from £300 million of extra funding for colleges, directly stemming from this Finance Bill. While making some proportionate tax rises in the Budget, we have maintained our position of having the lowest capital gains tax in Europe. We have struck the right balance, because we will have extra cash for our schools, and it is a real lifeline.

For all the Conservatives’ obfuscation, we have actually kept so many of our manifesto promises, one of which was to deliver a windfall tax on oil and gas companies—a policy so good that the Conservatives stole it when they were in government. The additional revenue raised by the EPL will help us to set up GB Energy, which will deliver for the British people by delivering the green jobs of the future.

May I briefly refer to the first Bill I ever spoke on in this House, which is now the Budget Responsibility Act 2024? I said the Bill was important because it was

“the only way we can grow those public services with a stable economy.”—[Official Report, 30 July 2024; Vol. 752, c. 1253.]

That is as true now as it was back then—[Interruption.] I hear grumbles from the Opposition Benches. Conservative Members do not seem to think that economic stability matters when it comes to investing in public services; they certainly know quite a lot about economic instability. This Government have been tasked with ripping out the rot following 14 years of chaos. The Bill helps to fix the foundations by providing the revenue to restore public services in York Outer and beyond.