SNP move for fuel actionThe SNP will reject the Chancellor George Osborne's flawed budget.
A reasoned amendment tabled by the SNP and Plaid Cymru opposes the Finance Bill at second reading on the basis that it fails to tackle the crucial issue of high fuel costs which is damaging jobs and economic growth.
The SNP supports a halt to the Chancellor’s plan for a further 3 pence hike in fuel prices in August, and the introduction of a fuel duty regulator to stabilise prices in the long term. While there is no mechanism to introduce such a measure into the bill this week, the SNP will do so at the earliest opportunity.
A broad range of organisations including the National Farmers Union for Scotland, the Scottish Taxi Federation, the Federation of Small Businesses and the Road Hauliers’ Association have spoken out in support of a fairer fuel regime.
SNP Westminster Treasury Spokesperson Stewart Hosie MP said:
"There are many reasons to oppose this flawed budget - the tax cut for millionaires, the tax grab on pensioners and the double inflationary rise on air passenger duty. We will be bringing forward specific amendments on all these issues.
"But the failure to deal with rising fuel prices at this time of economic stagnation is nothing short of negligent.
"A broad range of organisations have told me how badly fuel costs are hitting their businesses - from famers to taxi drivers and small grocers.
"The forum of private business said more than one third of their members cited transport costs - predominantly the price of fuel - as their main cost pressure.
“While the Freight Transport Association says the three pence fuel duty rise expected in August will increase the average cost of lorry operation by around £1,200 per vehicle, per year.
“If the Chancellor won't listen to the SNP, I hope he will listen to the voices of long suffering businesses, hauliers and households who are looking for support at this vulnerable time.
"This is a deeply flawed budget which is unravelling by the day. The Chancellor needs to go back to the drawing board and come back with a plan which will help get the economy moving again."
Notes:
COMMENTS ON THE NEED FOR A FAIRER FUEL REGIME
Simon Chapman, FTA’s Chief Economist, in Transport News magazine, May 2012:
“Independent research has shown that a cut in diesel duty of 2.5p per litre would have created an additional 175,000 jobs with no loss of revenue to the Exchequer. But, by contrast, the 3p per litre scheduled for August will increase the average cost of lorry operation by around £1,200 per vehicle, per year”
Phil Orford, Chief Executive, Forum of Private Business:
“The pips are squeaking, and everybody is feeling the pain. Businesses and consumers just can’t afford to keep paying out more and more for their fuel. There is a serious risk that economic recovery in the UK is strangled at birth if the Government doesn’t act, and act fast.”
Scottish Taxi Federation:
"We are disappointed that the Chancellor has not announced a cut in the level of fuel duty and that the rise deferred to August is still to go ahead. This will still hit small businesses and households hard and so we need to see a long term solution to address high and volatile fuel prices.
John Walker, Chairman, Federation of Small Businesses
“The rising fuel costs are creating very detrimental factors – profit margins cut, can’t invest in the business as we’d like to, drivers are putting in extra hours, take home for families is reduced. We can’t generate demand for taxis- it’s there or it isn’t - and already the recession is badly affecting business. It was the quietest Christmas ever this year.It’s causing a great deal of problems, and sometimes I wonder where the justification is coming from. We support the SNP position on a fuel duty regulator.”
Scottish Grocer’s Federation:
“The rising cost of fuel, along with other significant increases in overheads including energy prices, business rates and licensing costs, continue to erode the viability of many small and medium sized retailers in Scotland. Government should be doing everything it can to support small and medium sized businesses which are fundamental to economic growth and employment. Whilst we appreciate that the rising cost of fuel cannot indefinitely be reduced by public subsidy, we would support any measure which would provide more stability and predictability in fuel prices.”
National Farmers Union Scotland:
NFU Scotland is very concerned about the rising cost of fuel and its effect on rural businesses and communities. This is being felt most acutely in the Highlands and Islands of Scotland, where public transport is severely limited and fuel prices are among the highest in the UK. NFUS has called on the Government to reduce the burden that record fuel prices are imposing on the rural economy. NFUS accepts that the global price of oil is beyond the Government’s control, however MPs could help to address this critical problem through introducing a fuel duty regulator to cushion the blow of soaring oil prices.”
RHA Director for Scotland, Phil Flanders:
“The Road Haulage Association welcomes the Scottish National Party amendment to the UK Budget Bill to introduce a fuel duty regulator. As in the past, we firmly support the SNPs attempts to introduce a regulator mechanism as a method of bringing stability to what is currently an extremely volatile market. This is a very positive move and would help not only Scottish hauliers, motorists and businesses; the whole of the UK would also benefit. There has been a significant increase in the price of fuel since this concept was first debated under the previous Government and it is now a cost that is being felt by everyone. We consider that the introduction of a fuel duty regulator is an effective, workable solution to what is fast becoming an untenable situation for everyone.”
Attributable to a FirstGroup Spokesperson:
"FirstGroup, along with the rest of the bus industry, is facing a number of cost pressures, including the rising cost of fuel. Taken with the difficult economic circumstances facing communities across the country, these create a challenging operating environment for buses."
http://www.snp.org/media-centre/news/20 ... uel-action
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