Rural Fuel Duty Relief

James Wild Excerpts

Wednesday 7th January 2026 Westminster Hall

[James Wild (North West Norfolk) (Con)]

I congratulate the hon. Member for North Devon (Ian Roome) on securing this debate, and I thank all hon. Members for the contributions that we have heard. It was a Conservative Government that introduced the rural fuel duty relief scheme in 2019, and that was in recognition of the fact that remote communities face higher pump prices due to the high cost of transporting and distributing fuel.

The scheme was subsequently extended again in 2015 to include more areas across England and Scotland, providing a welcome 5p per litre reduction in prices to help families and businesses in those areas, particularly where they might have only one filling station to choose from. The scheme recognised that rural communities, especially isolated ones, face challenges that justify targeted support. As we have heard from hon. Members, it has proved effective and needed.

In the main Chamber, my right hon. Friend the Member for Louth and Horncastle (Victoria Atkins), the shadow Environment Secretary, has been setting out the support that the Conservatives have consistently provided for people in rural Britain; many of my colleagues are speaking in that debate. In government, we demonstrated our commitment to those who live and work in the countryside, including my North West Norfolk constituents.

Our fuel duty record underlined that. As well as the rural fuel duty relief, we froze fuel duty every year from 2011. In March 2022, we went further and introduced a 5p cut to fuel duty across the board. That was not merely about tax policy; it was about recognising that, for rural communities, a car or a van is a lifeline, not a luxury. It connects farmers to markets, helps children get to school, helps people get to work or health appointments and keeps rural enterprises in business. Every penny added to the cost of fuel has a multiplied effect in areas where public transport is limited and journeys are longer.

Our support for rural communities extended far beyond fuel duty to infrastructure and supporting agricultural businesses, recognising their vital contribution to our country and to the social fabric—what a contrast to what we have seen under this Government. The Government say that the cost of living is their priority, but they are adding to the costs for families and businesses. Inflation was at 2% when the Government came in, and they have nearly doubled it. The much-vaunted promise of £300 off energy bills is nowhere to be seen.

In her Budget, the Chancellor announced that Labour would end the 5p fuel duty cut that we introduced. That measure will take effect from September this year, and will see the average family pay £100 a year more. The Road Haulage Association estimates that it will add more than £2,000 a year to the operating costs of a heavy goods vehicle. From April next year, the Government will scrap the 16-year fuel duty freeze that we introduced, and inflation-linked rises will follow. That marks the end of the support offered to motorists through the freeze since 2010, which has saved them £120 billion. That puts in context the modest £5 million or so cost of the rural fuel duty relief.

In November, the Chancellor also announced her pay-per-mile tax on electric vehicles, which is set to cost drivers an extra £255 a year. It is little wonder that the RAC has said that simply keeping vehicles on the road has become a significant financial challenge. The Prime Minister has been boasting about the £3 bus cap—a cap that he increased by 50%. Whether it is fuel duty or public transport, the Government are making things harder and more expensive for rural communities.

Rural communities are not only being punished at the pump. In the debate, we have heard reference to the family farm tax, which breaks up the farms that form the backbone of our rural communities. The modest change that the Minister has announced is welcome as far as it goes, but given the damage that the tax will do, the Conservatives are committed to reversing it entirely.

As well as the increases to fuel duty, business rates will increase, hitting rural pubs and businesses. UKHospitality estimates that an average pub will pay an extra £12,900 over the next three years. The Minister was sent out to defend the farm tax, and he said there would not be changes, but then there were. At Treasury questions, I called on the Chancellor to look again at business rates increases, and the Minister ruled that out then, but we read today that there may be changes. Apparently the Business Secretary has even noticed the damage that the increases will do—presumably not after discussing them in a pub, given that many Labour MPs have been barred. Will the Minister therefore confirm whether the Government are considering making those changes, as the sector and many across the House have called for?

The rural fuel duty relief scheme reflects an approach to governing that recognises the distinct challenges and vital importance of our rural communities. We introduced the scheme and extended it, and throughout our time in government we demonstrated that we understand and support those who live and work in the countryside. Given that it is now more than a decade since the scheme was last expanded, and given its modest cost, I fully support a review of the relief. The Treasury often says that it keeps taxes under review, but this measure deserves a proactive review, and I hope that the Minister will commit to one.

By contrast, this Government’s tax rise after tax rise make life harder for rural businesses and rural people. Against a backdrop of weak growth and rising unemployment, Labour’s approach sadly threatens the fabric of our rural communities. Those rural communities deserve much better.