Business of the House

Ann Davies Excerpts

Thursday 23rd April 2026 Commons Chamber

[Sir Alan Campbell]

We certainly do not. I understand my hon. Friend’s concerns and the concerns of Uber drivers. Of course, we would want to see companies consult with their employees and hopefully give them reassurance going forward, but I will take up his concerns directly with Ministers to ensure that we are doing everything we can to get ahead of this particular game.

[Ann Davies (Caerfyrddin) (PC)]

The Iranian war has caused a huge spike in fuel prices for all drivers, but this is especially true for businesses in Caerfyrddin and rural Wales. Ammanford construction business TRJ has been deeply affected, along with haulage companies such as Tony Powell Transport, which has seen costs increase by £7,000 a week. Transport costs for all Caerfyrddin businesses will inevitably result in higher prices, including for food and essentials, for all our constituents. I appreciate that the 5p cut in fuel duty will continue until October, but can the Leader of the House ask the Chancellor to help businesses by using the additional taxation received through the increased fuel price by further cutting fuel duty?

[Sir Alan Campbell]

The hon. Lady is right to draw attention to the concerns about the possible economic fallout from the current situation in the middle east. As she points out, we are already taking action. We had already extended the 5p cut in fuel duty until September. We are also working at pace with our International Energy Agency partners on a co-ordinated release of oil stocks to the market, with the UK contributing 13.5 million barrels. The Chancellor and the Energy Secretary have met the petrol retail industry to make clear that drivers must get a fair deal, whether they are haulage drivers or domestic drivers. We need to make sure that competition is kept open and that the competition watchdog is vigilant on price gouging.

As the Chancellor and the Prime Minister have both said, we are keeping the situation under review. We are also keeping under review the cost of red diesel, which I know will be more important in some areas, in particular rural areas, than it might be in others. We have also taken action on heating oil, which again is probably more of a prevalent concern in areas like hers than it is in some urban areas.

To respond to what the hon. Lady said about the money that the Chancellor is meant to be getting in through taxation as a result of rising fuel prices. That is false economics; it does not exist. It may be that the receipts are coming in through one door, but they are going out through another because costs to Government rise, too. We should not try to—I know she is not trying to—kid people that somehow this is a benefit to the Chancellor. The Chancellor does not want this to happen and it is not as straightforward as the hon. Lady has said.