The Government recognises that the rising price of motoring fuel is a significant part of day-to-day spending, and the Chancellor keeps all taxes under review . I am sure that you were pleased to hear that the Government was able to defer Labour’s planned increase in fuel duty, which would otherwise have increased prices by 3 pence per litre this August.
Unlike the last Government, which raised fuel duty twelve times while in office, this Government has done more to support to motorists than any other and we have now avoided two years’ worth of rises planned by the previous Government. Despite inheriting the largest deficit in the developed world and battling against a tough global economic background, the Government cut fuel duty by 1 pence per litre last year and announced the introduction of a new Fair Fuel Stabiliser that ensures North Sea oil companies contribute more at times of high oil prices. This year, the Government delayed another planned 1pence rise legislated for by Labour.
As a result, petrol prices will be 10 pence per litre less this summer than if Labour were still in power. Families will have saved £159 filling up the average-sized family car by the end of this year. Altogether, this amounts to a £4.5 billion support package for motorists from 2011-2013. These steps come on top of other measures to help hard-working families with their cost of living, such as freezing council tax for the second year and putting money back in the pockets of 25 million taxpayers through rises in the personal allowance.
The Government’s decision is the right action to help families, businesses and the broader economy, and I welcome it wholeheartedly.