Fuel Prices Debate

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Department: HM Treasury
Tuesday 15th November 2011

(12 years, 6 months ago)

Commons Chamber
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Elfyn Llwyd Portrait Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
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I congratulate the hon. Member for Harlow (Robert Halfon) on securing the debate. I was pleased to sign the motion, and to support his application to the Backbench Business Committee.

I have seldom witnessed so much unanimity across the Chamber, and I think that that is a sign of the seriousness with which people out there view the fuel situation. For a long time, my party—along with our friends in the Scottish National party—has argued in favour of some form of stabiliser. We tabled amendments to Budget motions in 2005 and 2008, and received support from outside organisations including the Freight Transport Association, the Road Haulage Association, the Federation of Small Businesses, and farming unions such as the National Farmers Union and the Farmers’ Union of Wales. Along with our colleagues in the SNP, we held an Opposition day debate on this matter in February this year, before the 2011 Budget in March.

According to the FairFuelUK campaign, fuel accounts for over 40% of all business transport costs. It is clear that continuing rises in fuel costs as a direct result of fuel duty rises will increase the pressure on companies that are already struggling to stay afloat, or perhaps already going under.

Roger Williams Portrait Roger Williams (Brecon and Radnorshire) (LD)
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I agree with the right hon. Gentleman about the effect of high fuel prices on businesses. One way in which businesses can deal with it is by upgrading their fleets so that their lorries become more fuel-efficient, but that will not be possible if the current proposal to phase out 100% capital allowances is implemented.