Fuel Duty

Priti Patel Excerpts

Monday 12th November 2012 Commons Chamber

[Priti Patel (Witham) (Con)]

Like all right hon. and hon. Members on the Government Benches, I welcome this debate and the opportunity that it presents to highlight the gross hypocrisy of Labour Members over fuel duty and the cost of living. Despite their contributions to the debate and the words in their motion, Labour’s record in government shows how shallow is their so-called concern about this issue. Today’s debate ranks as nothing more than a sanctimonious attempt by Labour Members to exploit the anxiety of the public for nothing more than superficial reasons of political opportunism. It is exactly these kinds of antics that erode public trust and confidence in politics.

Labour Members have come to the House today to argue for freezes in fuel duty, but at the time of their last Budget in March 2010 they came here to pledge the continuation of above-inflation increases in fuel duty for the duration of this Parliament. They may be afflicted by the collective amnesia that we have seen today regarding their record in office, but my constituents remember the misery inflicted on them as Labour presided over huge increases in the cost of fuel and the cost of living. In particular, they remember what happened in 2000, when the price of petrol at the pump surpassed 80p per litre. They have not forgotten the appalling way in which the Labour Government handled the matter back then and their failure to get to grips with the crisis and the impact that the fuel price increases were having on businesses and families. Despite various promises at the time, no action followed. Fuel prices consistently increased under the Labour Government. If Labour Members were genuinely concerned about the impact of the level of fuel duty on families and businesses throughout the country, they would not have increased fuel duty 12 times when they were in power.

By contrast, this Government have recognised the burden that fuel costs add to household budgets and businesses. As my hon. Friend the Minister highlighted, they should be congratulated on freezing Labour’s planned fuel duty increases and abolishing the fuel duty escalator, even managing to cut fuel duty by 1p. It is now 10p a litre lower than it would have been under a Labour Government, saving families £159 this year alone. The overall tax burden under this Government is lower than it would have been under Labour, as is the deficit. This country has been saved from the indignity of taking a begging bowl to the International Monetary Fund by dealing with the financial mess that the previous Government left for this Government. As a staunch believer in the power of low-tax economies, I would like the Government to go further in cutting this duty and lowering the overall tax burden, but of course Ministers are limited in what they can do because of the huge levels of borrowing for public spending that have existed.

One astonishing thing about fuel duty is that it raises far more money than is spent on our roads. The mismatch between the amount raised from motorists and the amount spent on improving our road network has caused huge concern to my constituents. Under Labour, revenue received from fuel duty rose considerably. In 1996-97, total receipts from excise duty on oils were £17.2 billion. However, when the Labour party left office, they were around £27 billion, and that is without taking vehicle excise duty into consideration. Despite that extra money from motorists—over 50% more in cash terms—Labour failed to invest in the road network, especially in Essex. My constituents have not forgotten that. Vital road schemes, such as the project to dual the A120, were completely axed. Labour pillaged the pockets of motorists in my constituency and gave them nothing in return. Instead of investing in infrastructure in Essex, Labour blew the money on unsustainable levels of public spending and the rising cost of debt interest payments. Many other schemes, including the Dartford road crossing, also demonstrate that point.

In conclusion, I want the cost of motoring to fall and investment in our road infrastructure in Essex to increase. That will never be achieved by anything suggested by the Labour party, including the shallow statements that we have heard today, hence my opposition to the motion.