Taxation (Energy and Vehicles) Debate

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Department: HM Treasury

Taxation (Energy and Vehicles)

Toby Perkins Excerpts
Wednesday 24th June 2026

(1 month, 1 week ago)

Commons Chamber
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Toby Perkins Portrait Mr Toby Perkins (Chesterfield) (Lab)
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I do not intend to detain the House for long. I welcome the motion to increase the electricity generator levy, which—alongside the Government’s plans to encourage participation at a competitive price in long-term fixed contracts for low-carbon generators—will weaken the link between electricity and gas prices, with the overall effect of bringing down energy bills for my constituents and consumers across the UK, as well as for British businesses.

I also welcome the long-overdue increase in the approved mileage allowance for workers from 45p per mile to 55p. It is very noticeable that over the 14 years I was in Parliament under a Conservative Government, that rate stayed exactly the same, while the cost of petrol rose by around 33% and the cost of diesel by around 44%. Every single year, those workers were worse off than they had been the year before.

The motion to temporarily reduce vehicle excise duty is also welcome. Right now, HGVs pay about £1,700 on average per vehicle; the motion would change that to £1 this year. Last month, I visited Spectrum Freight in Chesterfield, where we discussed the challenges the industry is facing. It and other businesses in the industry will very much welcome the Government’s sensible approach to supporting the sector at this difficult time.

Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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I call the Liberal Democrat spokesperson.