Rural Fuel Duty Relief

Angus MacDonald Excerpts

Wednesday 7th January 2026 Westminster Hall

[Ian Roome]

I know there are various apps that do that. There should be more awareness of them among members of the public.

Fuel duty is only part of the expense of running a vehicle, but many who fill up in areas impacted by the scheme have simply no transport alternatives. In my constituency, the households that benefit are 20 miles from their nearest train station, and bus passengers receive only the most limited bus service. Every January, those passengers are also hit by annual price increases from bus companies, which put extra strain on the cost of living.

The scheme is not particularly expensive. In the published list of non-structural tax reliefs, the Treasury estimates that the rural fuel duty relief scheme costs only around £5 million per year, and its uncertainty rating is considered low, yet during the past decade the scheme has been a roaring success. Barbrook filling station in my constituency tells me that this tax relief has made a massive difference to the viability of its business, keeping open an essential local service for many rural residents, local farmers and tourists.

[Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)]

In my constituency, the price per litre of unleaded is 160p. When I was in Northern Ireland over Christmas, places were selling at 125p. We have a 35% premium on the cost of living where I live, and fuel is major part of it. In my constituency, there is a big question as to whether the 5p is actually getting to the customer or being kept, and I hope that the Minister will address that.

[Ian Roome]

Fifteen years ago, Barbrook in my constituency was officially one of the most expensive places to fill up in England, but thanks to the scheme it has stayed competitive on price, as a small business that employs four people all year round, in an area where employment can be highly seasonal. During the summer, Barbrook’s fuel deliveries increase to several tankers per week because of extra demand, driven mainly by tourists visiting Exmoor national park and the famous North Devon coast on holiday.

I am also told that Barbrook filling station rescues many of those visitors—people who do not understand the extra challenge of driving long distances on small rural roads, or who do not plan for the extra fuel consumption of their journey. Many rural communities already suffer from very sparse public services, and fuel for transport is an important part of anyone reaching essential healthcare, such as their local hospital or dentist. As I know from speaking to chemotherapy patients at North Devon district hospital, where I worked before I was elected to this House, access itself is half the battle.

My Liberal Democrat colleagues and I—including my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) and others—champion the real needs of rural communities, as do colleagues who are here today. We have argued for the rural fuel duty relief scheme’s importance and for extending it to many more rural parts of the country.

However, support for the scheme should really be cross-party. By my count, at least 11 directly impacted rural constituencies are represented by MPs from Labour, the Conservatives, the Liberal Democrats and the Scottish National party. There are also many neighbouring rural constituencies with villages that rely on a filling station just over the border that is supported by this tax relief.

Since 2011, it has become a feature of Budgets under successive Governments that fuel duty will be frozen. That has benefited motorists across Britain, yet in March 2022, a further 5p cut in fuel duty was introduced and then held in place, even as the value of the rural fuel duty relief scheme continued falling in real terms. That means that in recent years we have gone backwards: many of our most rural taxpayers have effectively increased their support to motorists in some of the best connected parts of the country. Motorists in urban communities not only benefit from having more public transport alternatives but often have numerous filling stations to choose from—all competing on price, to the benefit of local people. By contrast, many of my constituents count themselves lucky to have even one filling station in their area.

The Government have stated that economic growth across the country is their top priority for this Parliament. In parts of the country that are distant from major infrastructure projects, such schemes are an important measure, supporting small businesses, farming and tourism, helping young people to access opportunities, and helping patients to access essential healthcare. At a time when the Government are increasingly under fire for their policies towards rural and farming communities, updating the rural fuel duty relief scheme would be one way for them to demonstrate their concern about those families who live in rural areas and the problems they face in their daily lives.