Fuel Duty Debate

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Department: HM Treasury

Fuel Duty

Russell Brown Excerpts
Monday 12th November 2012

(12 years ago)

Commons Chamber
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Cathy Jamieson Portrait Cathy Jamieson
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The hon. Lady makes a valid point. I am certainly well aware of the problems faced by people in rural areas where there might be no alternative. I hope that she will support our motion this evening.

The Chancellor and the Prime Minister might never have had to worry about the cost of filling up their cars, but millions of people across the country worry about that every day, as we are hearing. To be fair, some Government Members recognise that and have been vocal about it, or at least they were until today, when they suddenly appeared to go quiet.

Russell Brown Portrait Mr Russell Brown (Dumfries and Galloway) (Lab)
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Surely this is a no-brainer. If the Chancellor decided before August to freeze fuel duty and not introduce the additional 3p rise, surely the same logic should be used today, when fuel costs even more, and the increase should not be introduced in January.

Cathy Jamieson Portrait Cathy Jamieson
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My hon. Friend makes a valid point. We have neighbouring constituencies, so I am certainly aware of the difficulties some of his constituents face in trying to access fuel at an affordable cost. He will also be aware that although there have been some price reductions by the big supermarkets, which can afford to use fuel as a loss leader, the small and independent garages, many of which his constituents rely on, do not have that luxury. Many of those small retailers are under increasing pressure as a result of tighter margins and are having to take smaller deliveries of fuel to ensure that cash flow does not become a problem. Those are often the businesses that serve rural areas. If they cannot continue to operate, customers will face having to travel many more miles just to fill up the tank.

It was only after pressure from Labour and campaigns such as FairFuelUK that the Chancellor decided to delay the last rise until 2013. Indeed, if we look back on what could be called the fastest U-turn in history, we see that he backed down only hours after Labour called for that help for businesses and families. We welcomed his climbdown then, and we and millions of motorists up and down the country would welcome a renewed commitment from the Government.