COMMONS SHOULD BACK FUEL DUTY PLAN - KEETCH

1.37.08pm GMT Thu 28th Jun 2007

Liberal Democrats are seeking parliamentary approval for a plan to cut fuel duty in remote rural areas. Liberal Democrat MPs are proposing an amendment to the Finance Bill which will provide the maximum duty reduction allowed under EU law for people who live in remote rural areas and buy their fuel at local filling stations.

The proposed Rural Fuel Discount Scheme would benefit people in the most remote and rural areas who pay a higher price for their fuel - up to 10p a litre more than in big cities. Currently EU law allows fuel duty to be cut by up to 2.4p per litre - a power already used in France, Portugal and Greece but not in the UK.

Sarah Carr, Liberal Democrat Parliamentary Candidate said, "This plan would make a real difference to people in remote and rural areas, like parts of Herefordshire. In these areas people face a triple whammy of higher fuel prices, longer distances, and little or no public transport alternative. For many living in remote rural locations a car is a necessity, not a luxury.

"The Liberal Democrat proposal would help to reduce the extra burden on people in these areas and also help the filling stations. While the cut allowed by EU law is relatively modest, for people who drive long distances it would amount to a significant saving."

Paul Keetch, MP for Hereford, said, "I hope this clear and straightforward plan will win the support of Labour and Tory MPs who failed to back this principle last year. There are significant extra costs in rural areas yet incomes are much lower. The cut we propose takes a step towards making Britain fairer."