Today, Lucy Allan MP signed a joint letter to the Prime Minister with other Conservative MPs, calling for a reduction in fuel duty or the scrapping of VAT on fuel. The letter, also signed by Chair of the Education Select Committee, Robert Halfon MP,
Reducing the cost of living is a priority for Lucy in Parliament and is one of the most common issues Telford residents have raised. Families rely on their vehicles for work and transport and Lucy is determined to ensure that unavoidable expenses are a priority for government tax and duty cuts.
The Prime Minister has spoken of his desire to cut taxes and duties and Lucy hopes that this letter will ensure a renewed focus on tackling the cost of living.
You can read the full text of the letter below:
Rt Hon Boris Johnson MP
Prime Minister & First Lord of the Treasury
10 Downing Street
London
SW1A 2AA17 March 2022
Dear Prime Minister,
We are writing ahead of the Spring Statement in light of record high petrol and diesel prices hitting hard working people across the country forcing the cost of living to continue to rise.
In many parts of the country, we are seeing prices at the pumps reach £2 per litre. This means the average family is paying £16 more to fill up their tank than a year ago, and in rural areas with traditionally higher pump prices they are having to find £20 extra. Furthermore, hauliers are forking out £120 more to fill up than in February 2021, while for white-van men and women it is £25 more. This is simply unaffordable for working families and given these record prices, the Treasury is yielding billions more than was projected when the Chancellor set the budget.
The 12-year fuel duty freeze, which has saved motorists £15 every time they fill up, is extremely welcome, but the current circumstances mean the Government must go further by either cutting fuel duty or reducing VAT on fuel. This could be done with the extra £2 billion the Government has received in fuel tax revenue as a direct result of the higher prices.
Furthermore, it is clear that despite falling wholesale oil prices, particularly in 2021, retailers continue to increase their prices by a disproportionate amount, meaning that consumers continue to pay more. According to the RAC Foundation and FairFuelUK’s national panel, average profit margins for diesel have increased by 150% in the last two years, with petrol margins at the pumps more than doubling.
This shows that when wholesale oil prices rise, there is a rocket effect in terms of prices at the pumps, but when they fall - as they are currently - there is a feather approach to reducing pump prices. To that end, we are calling on you to establish a Pumpwatch consumer monitor to ensure fair prices at the pumps in line with wholesale prices.
We hope that you will continue to support working people across the country by taking these further measures to cut the cost of living.
