The Government have already taken action on fuel affordability at the pump. In last year’s Budget they extended the 5p per litre cap for a further five months, and they have also cancelled the increase that would have otherwise taken place in line with inflation at the start of this financial year.
If you were a gardener with a Renault Trafic or a builder with a Ford Ranger in Scotland, Mr Speaker, you would be paying over £150 just to fill up at the pump in order to get to work. When Spain and Poland and Germany and France and Italy and Ireland and Australia are all intervening to help their industry and economy, our Chancellor here stands idly by and congratulates herself on the quality of her inaction. We do not want to hear from Anas Sarwar in Scotland, because he promised £300 off our energy bills and they are now £700 higher than the level that he promised in 2024. We want to hear from the Chancellor. What is she going to do about diesel specifically, and when is she going to do it, to keep the grafters of Scotland turning up for work?
The Scottish National party has had ample opportunity in Scotland to invest in energy, to invest in energy infrastructure and to invest in the changes that we need in our economy to bring down energy bills, and when it comes to fuel duty—[Interruption.]
If the increase in fuel prices rather than the Chancellor’s two disastrous Budgets is to blame for the stagnating economy, why does the Chancellor believe that raising fuel duty further in September will help to reduce the cost of living when in fact it will harm the economy more, and will deliver another direct hit to the pockets of my constituents?
Before the conflict in Iran started we saw inflation falling, we saw unemployment falling and we saw growth increasing by 0.5% in one month at the start of the year. That showed that our economic plan was the right plan for this country, and it is important that we stick to it rather than returning to the bad old days of the high borrowing and high interest rates that the Conservatives brought us when they had a chance to run the economy.
Labour is at war with motorists, and Reform’s idea of protesting about fuel prices was revealed at their non-event yesterday—and, indeed, its members are not even here today. Only we on the Conservative Benches are standing up for our motorists and our constituents. Will the Chancellor take this opportunity to help our constituents, our businesses and our motorists, and adopt our plan to extend fuel duty relief—yes or no?
I agree with the right hon. Member that Reform’s rabble yesterday was deeply underwhelming. As for fuel duty, the rate is currently lower than it was at any point under the last Government, or, at least, it was never lower under the last Government than it is now. In real terms, it is lower than it has been at any point since 1993.
The fuel duty freeze is of course very welcome for drivers of petrol and diesel vehicles, but this is the second time in just over four years that petrol and diesel prices have gone through the roof as a result of international oil and gas uncertainty. Is it not time that we gave as much support as possible to those who want to make the transition to electric vehicles? According to Autotrader, the average price of electric vehicles is already lower than that of petrol and diesel vehicles. Will the Government confirm that they are bringing forward plans for greater ability to charge at home and bringing down the cost of electricity as far and as fast as possible, so that more drivers can benefit from long-term lower driving costs?
My hon. Friend is right to say that we are seeing a continued uptake of electric vehicles—we saw that in March this year. More electric vehicles were purchased in March than in any month in British history, and we can see that take-up is continuing to increase. This Government are increasing and expanding the grants for those who want to buy an electric vehicle, and we are making progress on permitted development rights, so that those who do not have easy access to charging in their driveways can have easy and cheap access to on-street charging.
Even before the current conflict in the middle east, fuel suppliers in the Merthyr Tydfil part of my constituency were charging an average of 10p per litre more than those in other parts of my constituency and neighbouring towns. Even London fuel prices were cheaper than they were in Merthyr Tydfil, and the situation has not improved since. I have written to suppliers and met some, with limited success, and I have asked the Competition and Markets Authority to look at the matter, which it has so far not done. May I ask the Chancellor to offer whatever assistance she can and to urge fuel providers in Merthyr Tydfil to act fairly? Will she urge the CMA to consider what it can do to ensure fair play for my constituents?
I thank my hon. Friend for his representations, and for the work that he is undertaking on behalf of his constituents in a rural part of our country. We are making sure that all garages are on the new fuel finder website that the Chancellor has introduced. That should drive up competition and make it easier for the people he represents to compare the cost at the pumps in different garages nearby. It is good to hear that he has been in touch with the CMA; the Chancellor, too, has been in discussion with it about making sure that we have competition in this industry. If I can help him to get a meeting with the CMA, I will happily assist.
Whereas the Conservatives froze fuel duty for 14 years, Labour is planning to increase it by 5p, costing families £150 a year and hauliers £2,000. When the Chancellor was asked to reverse her hike, she said she was
“loath to spend Government money”
to do so. There is no such thing as Government money; there is only taxpayers’ money. Rather than increase taxes again, will she actually help households and businesses facing higher prices and scrap this fuel hike?