Fuel Prices

Thu, Mar 17, 2011

news from westminster

17 March 2011

Alan Johnson voted in favour of the below Opposition Motion tabled by the Shadow Chief Secretary to the Treasury last night to reverse the Government’s VAT rise on petrol and diesel.

The motion was defeated.

“That this House recognises that rising

world oil, food and commodity prices are increasing the cost of living and adding to the squeeze on families on low and middle incomes across Britain; believes this has been compounded by the Government’s decision to increase Value Added Tax (VAT) to 20 per cent, which will cost a family with children an annual average of £450, has helped to push up Consumer Price Index annual inflation to four per cent. and, according to the House of Commons Library, is adding £1.35 to the cost of filling up a vehicle with a 50 litre tank; notes that the AA announced last week that the cost of unleaded petrol has now reached an average of £6 a gallon and that the fuel duty stabiliser promised in the 2010 Conservative Party manifesto has not yet been announced or implemented; further notes that the previous administration regularly postponed planned fuel duty rises when world oil prices were increasing sharply, as they are now; and demands the Government takes immediate steps to reverse January’s VAT rise on road fuels, using the extra £800 million from the bank levy and securing the appropriate EU derogation, in order to provide relief to hard-pressed motorists and, at the time of the Budget, looks again at the annual duty rise due in April.”



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