Victoria Atkins, Member of Parliament for Louth & Horncastle, has joined a campaign with over seventy other MP’s urging the Chancellor to keep the cost of fuel down at the Budget.
In a joint letter to Rachel Reeves, dozens of Conservative MPs tell the Chancellor to consider the impact of a rise in fuel duty on low-income families, small businesses and the logistics industry.
Fuel duty has remained frozen for the last 14 years, currently standing at 6p less than when Labour were last in power. This has benefitted Britain’s 37 million motorists and businesses. However, Ms Atkins argues that instability in the Middle East will continue to make oil prices volatile which means it is essential the Chancellor helps to keep the cost of fuel down at the Budget.
Working with FairFuelUK, Ms Atkins and other MPs claim that hiking fuel duty slows economic growth, costs jobs, stokes inflation and reduces consumer spending. Latest evidence from the Centre for Economic Business Research predicts that raising fuel duty will only bring about short-term benefits for the Treasury and the long-term impact of raising fuel duty could lead to a collapse in revenue by 60%, within five years.
Analysis from FairFuelUK indicates the impact on family finances if fuel duty is increased by 5p is estimated to add £160 to annual fill-up costs, whilst the average commercial van could see costs spiral by £500. Ms Atkins also suggests that these costs would be unavoidable for constituents in rural communities, such as in the Louth & Horncastle constituency, who often don’t have access to public transport.
Ms Atkins also called for the Government to continue the delivery and roll-out of the Conservative Government’s PumpWatch scheme, which allowed motorists to locate the lowest forecourt pump prices. The MPs argue this would protect motorists, families, and businesses across the UK.
Commenting Victoria Atkins said:
“For the last 14 years, the Conservatives have backed Britain’s motorists and our rural communities by keeping fuel prices down at the Budget. There is yet to be any indication from this Labour Government that they will do the same.
“A rise in the cost of fuel at the Budget would have a devastating impact on families and businesses in our rural constituency.
“That’s why I have joined over 70 of my colleagues in signing this letter to demand the Chancellor does not punish our motorists, families and businesses at the upcoming Budget.”