Taxes on Motor Fuel

Tonia Antoniazzi Excerpts

Monday 23rd May 2022 Westminster Hall

[Tonia Antoniazzi (Gower) (Lab)]

I beg to move,

That this House has considered e-petition 599089, relating to taxes on motor fuel.

It is a pleasure to serve under your chairship, Ms Elliott. I thank the petition creator, Michael Bromley, for taking the time to meet me last week to discuss his motivation for creating the petition. With more than 102,000 signatures, it obviously means a lot to a lot of people. I thank all those who signed the petition, especially the 152 people from Gower. I also thank the Petitions Committee for running an online survey of petitioners so that they could explain in more detail exactly why they had signed the petition. The survey had nearly 2,500 responses, and that overwhelming number of responses reflects the strength of feeling on the issue.

The petition calls for a 40% cut to fuel duty for the next two years, in order to go some way to combatting the spiralling cost of motor fuel. It states that

“The price of diesel and petrol is at an 8-year-high”,

and that the Government have

“the ability to sacrifice some revenue to appease the British public.”

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

If the Government are concerned that the fuel duty relief is not being passed down to the pumps, why is that not being addressed, and in the strongest terms? Does the hon. Member not agree that there must be consequences to ensure that the public are not ripped off at the pumps?

[Tonia Antoniazzi]

That is a big concern to people. When there was a fuel duty cut from the Government—of only 5p, but still—we did not even notice it. That is very concerning. I hope the Minister will address that issue.

When I spoke to Michael last week, the issues that he raised, and that were raised in response to the survey, were the same as those that my constituents raise with me week in, week out. Michael explained that as a single parent he could see the cost of filling up starting to mount, and that as a company owner he has had to make economies in the business as well. He is therefore clearly seeing this from two sides. Michael said that reducing the mileage of company cars and ultimately cutting the number of cars in the fleet was a big issue for his automotive business. We also spoke about the environmental angle. He said that he was really supportive of electric cars, but that there were still issues with the initial cost of electric cars and the lack of infrastructure to support a mass roll-out.

The AA has calculated that the cost of filling a typical 55-litre tank has risen during the year from £70.61 to £92.20 for petrol, and from £71.94 to £99.48 for diesel. There has been the most derisory of efforts to help drivers. For me, that is symptomatic of a Government who have no idea about the impact that the cost of living crisis is having on people across the country—rising home energy prices, food prices rocketing and the cost of fuel at a record high.

[Jessica Morden (Newport East) (Lab)]

May I add in the views of the domiciliary care workers whom I met recently in Newport East? Collectively, care workers drive more than 4 million miles a day to care for the vulnerable in our communities. They fear that they may have to leave the profession because the cost of fuel is making it difficult for them to get to work. Does my hon. Friend agree that that can only add to the recruitment crisis in care?

[Tonia Antoniazzi]

I thank my hon. Friend for making the point about care workers being on the road all the time. That cost has a huge impact on the quality of the care service, which we need to support, particularly at this time of year. So yes, that does contribute to the crisis. I hope to hear the Minister’s views on that as well. Ultimately, Michael would like the Government to grab this issue “by the scruff of the neck”, as he said. I am sure he will be listening very carefully to the Minister’s response.

For me, the most telling part has been the responses from the people who signed the petition. We heard about how the austerity agenda from 2010 was very hard for so many people; they allocated every month how much they were going to spend on fuel. Now, those prices are rocketing. Despite rising costs, many people have told us that they have to drive. They have to use their cars for their job or to access essential services. One man said:

“We live in an isolated village with a bus service that runs once a week, out of the village and back again. My wife is disabled, so the car we have is absolutely vital to us.”

As my hon. Friend the Member for Newport East (Jessica Morden) has mentioned, we heard from care workers who have to travel between clients as part of their work. One told the survey:

“I am a home carer for the elderly and vulnerable who live at home. We are paid little enough as it is, with petrol prices so high, and that comes out of our pockets, not the company that I work for. This means if I don’t have the money to put fuel in my car, I can’t go to work, and these vulnerable people do not get essential care.”

Rising fuel prices are also impacting on people’s ability to visit and care for their own relatives. Where once people used their cars as a lifeline to visit friends and family, the cost of filling up has made them even more isolated, compounding the impact that we suffered during covid-19. Another comment read:

“I haven’t seen my mum in months because of how much it will cost me to drive to see her. Two years of lockdown and now it feels like another worse punishment…My children and grandchildren live 100 miles and 140 miles away, so I have had to restrict travelling to see them due to the cost of fuel. The two years of covid restrictions has affected my mental state, and not to be able to see my children and grandchildren has exasperated this condition.”

Many are having to make difficult sacrifices to get by. One person said:

“I work for the NHS and have two disabled children. It has been a nightmare, as I cannot afford to keep putting fuel in, but I need it, as they go to a special school a few miles away and I have to go to different hospitals for work. I go without food so that my kids have food and fuel, all because these prices keep rising.”

In many of these situations, there are no alternatives for people. Public transport links are often not good enough, and the Government’s lack of investment in local transport has made the public reliant on their own means of transport. I have been contacted by a community car scheme from Gorseinon in my constituency about fuel prices and the approved mileage allowance payment rates. Such schemes rely on volunteers who support those with mobility issues by taking them to appointments, often NHS appointments, instead of going by ambulance. The rise in petrol prices has affected those schemes’ ability to recruit and retain voluntary drivers, which will ultimately have a knock-on effect on the NHS. The volunteers also serve as companions to people who may be isolated and lonely. This lifeline, like many others across the country, is at risk if the Government do not act.

When the Chancellor set out a cut of 5p per litre in his spring statement, we did not think it would make much of a difference. It has not even scratched the surface. In fact, last week there were newspaper reports of this cut barely being passed on to the customer at the pumps, as my hon. Friend the Member for Newport East has spoken about. When we go to fill up, we quickly see price rises when oil prices go up, but we rarely see lower prices when the price of oil falls. Any evidence of profiteering by the petrol retailers must be looked at in full, and I welcome the Business Secretary’s call on retailers to make sure they pass on any cut in the oil price to customers.

We know that there is more the Government can do. We have seen examples from across Europe of Governments taking action to deal with the cost of fuel. In Poland, the Government cut VAT on fuel to 0%—something that UK Ministers said we could not do within the EU. Why are we not doing it now? Ireland’s Government announced a 20% cut in excise duty per litre of petrol and a 15% cut per litre of diesel. France introduced a 15 cents per litre discount on fuel prices on 1 April and has given €400 million in immediate aid allocated for hauliers. That money will be allocated to companies in the transportation sector based on the number of their vehicles and their tonnage. In Germany, the federal cabinet announced a relief package, according to which the energy tax on fuel is to be reduced to the minimum rate—a cut per litre of about 14 cents.

Spain introduced measures to cut fuel duty by 20 cents per litre and Belgium cut its fuel duty by 17.5 cents per litre. The Netherlands, Italy, Slovenia, Hungary, Croatia, Romania and Sweden have all introduced measures to cushion the blow to consumers of these higher prices.

The Labour party has made it very clear that we will introduce a windfall tax on oil and gas companies that are benefiting from this increase in prices. We have seen bumper profits from Shell and BP in the first quarter of this year, while prices have risen and risen for working people and pensioners, with no end in sight, and there is no sign of action from this Government either. The Tories are out of ideas and out of touch. They should bring in an emergency Budget urgently, with a one-off windfall tax to cut household bills and support businesses.

I know that the people who keep this country going—those who need to get to work, those with caring responsibilities, the people who deliver our parcels, and people who want to go out and enjoy themselves after two years of restrictions—will be fascinated by what the Minister tells us today. The 102,000 people who took the time to sign this petition, and Michael in Chorley, will be waiting to see if the Government are really willing to help with the cost of living crisis.

--- Later in debate ---

[Tonia Antoniazzi]

I thank the Minister for her response to the petition, and I thank the petitioners for signing it and Michael Bromley from Chorley for promoting it. This petition was created on 18 October 2021 and closed on 18 April, because they last six months, but what a six months it has been. He was concerned in October, and many people have expressed their concerns alongside him.

The sum of £9 billion was mentioned earlier—that is the Government’s support to help people with energy bills through their council tax bills. I say to the Minister—I know she cannot respond—that £9 billion was the sum that the Government wasted in relation to personal protective equipment, so we know they are not looking after their pennies.

When we left the EU, one thing we were promised was that VAT on fuel would be cut, and it has not been. There is a knock-on effect on costs, as many Members have said, and the Government need effective and rapid ways of putting money into our constituents’ pockets. Like the 100,000 petitioners, we want more to be done, because unfortunately they are not feeling the benefit of what has been done so far. I thank the Minister for responding, and we will carry on from here.

Question put and agreed to.

Resolved,

That this House has considered e-petition 599089, relating to taxes on motor fuel.