Tuesday 31 March 2009

DARLING’S ‘APRIL FUEL’ DUTY INCREASE MAY HINDER ECONOMIC RECOVERY.



DARLING’S ‘APRIL FUEL’ DUTY INCREASE MAY HINDER ECONOMIC RECOVERY.


AS LABOUR INCREASE FUEL DUTY - SNP FREEZE COUNCIL TAX AND CUT BUSINESS RATES AND PRESCRIPTION CHARGES

SNP Westminster Transport spokesperson, Angus MacNeil MP, has appealed for the Treasury to ditch plans for today’s (Wednesday) near-2p increase in fuel duty arguing that the twice delayed hike may hinder economic recovery.

Increases in fuel duty were twice postponed in July and October last year – and Mr MacNeil argues that now, in the teeth of recession, is the wrong time to go ahead with the plans.

Mr MacNeil said:

“The Treasury is clearly desperate for every penny it can get, but pushing up fuel prices is the wrong thing to do in the teeth of recession.

“Fuel duty increases have twice been postponed previously, and Alistair Darling will be an April fool if he doesn’t rule it out again now. It may boost empty treasury coffers, but an increase will actually hinder economic recovery.

“At a time when the Treasury should be stimulating the economy, this increase will hit already hard-pressed households and businesses.

“It is clearly another blow for motorists and fuel duty will account for about 71 pence of every pound the motorist spends at the forecourt. It is also a further below to motorists who were told last month the cost of replacing a lost or stolen driving licence, or getting a photocard, was going up along with vehicle testing charges.

“It is more than ironic that Scotland, as one of world's largest oil producers, is being hardest hit by Labour’s irresponsible fuel duty increase.
“The contrast between Labour’s fuel tax increase, on the day that the SNP Scottish Government freeze Council Tax, and cut business rates and prescription charges, could not be more stark.”

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