Local MP David Mundell welcomed the Chancellor’s confirmation that the Government will delay the fuel duty rise scheduled for 1 August until 1 January 2013. The decision means that pump prices will be 10 pence a litre cheaper than if the Government had not abolished the pre-existing fuel duty escalator. As a result of repeated action to support motorists, fuel duty will not have increased for two successive years and the average family with a car will be £159 better off overall than they otherwise would have been. Hauliers will on average be £4,900 better off.
Mr Mundell has raised the concerns of his constituents on this matter several times in the last few months with both the Prime Minister and Chancellor and believes the Government has provided some much needed respite to families and businesses struggling in the current economic climate. The cost of today’s action on fuel duty will be met in a fiscally neutral way, from reduced expenditure through savings in Departmental spending.
Mr Mundell commented: “When motorists fill up at the pump they will feel the direct benefit of this decision in their back pocket. I firmly believe this is the right action to support the wider economy and quite literally keep it moving. Having spoken to the Prime Minster and Chancellor, they recognise it is important that families and business have as much money as possible to spend on other priorities over the summer.
“That said, fuel prices in our rural area are still too high and I will continue to push for a fuel stabiliser to protect our most rural communities.“
Mr Mundell also expressed disappointment at Labour's reaction, saying: “Only the Labour party would complain and take credit when the government made the right decision, it makes you wonder whether they are representing the electorate or themselves. Under Labour’s plans, petrol would have cost 10p more a litre so this Government won’t be taking any lectures from them in supporting motorists.”