Belfast Telegraph

Friday 25 July 2014

Government hints at fuel rethink

Labour's call to delay the tax hike until at least April 2013 was defeated by 282 votes to 234, a Government majority of 48

The Government has hinted that a planned fuel duty rise could be axed as ministers saw off a Labour call for the 3p increase in January to be abandoned.

Treasury Economic Secretary Sajid Javid said the Government understood the pressures facing households and was "determined" to help with the cost of living.

Conservative backbencher and Harlow MP Robert Halfon, a prominent campaigner on fuel duty, resisted the chance to back Labour's call for a freeze because he believed ministers were in "listening mode" on the issue ahead of Chancellor George Osborne's autumn statement next month.

"I believe it is perfectly sensible and right to wait for the autumn statement, given the Government's record, given that they cut fuel duty last year and given that they have stopped two fuel duty rises," Mr Halfon told the Commons. Labour's call to delay the tax hike until at least next April was defeated by 282 votes to 234, a Government majority of 48.

Tory MPs appeared to have ignored shadow chancellor Ed Balls' call for them not to accept the "nods and winks" from Mr Osborne on the issue but to instead back Labour's call to insist on the rise being delayed.

Mr Javid told the Commons: "The Government is doing all it can to help hard-working families with the cost of living and putting money back into their pockets. Action on fuel duty is part of this. Fuel duty is currently 20% lower in real terms compared to its peak in March 2000 and 7% lower compared to May 2010.

"If we had continued with the policies of the previous government, quite simply prices would be higher, fuel would be 10p more expensive per litre. I know some will call for a further freeze in fuel duty today. I can assure them this Government understands the financial pressures hard-working families are facing.

"Subject to the constraints of the public finances, this Government is determined to help families with the cost of living."

Prime Minister David Cameron's official spokesman said the Government has always tried to "listen to the concerns of motorists" on the affordability of any duty hikes.

The spokesman told a regular Westminster media briefing: "There are a series of planned rises in fuel taxes programmed in and those will generate revenue which will help bring the deficit down. But what the Government has sought to do thus far is listen to the concerns of motorists and, where it can, delay or cancel those planned rises."