Treasury ?won?t sacrifice cash to help drivers?
basads
Warning: Danny Alexander, the Treasury Chief Secretary dismissed suggestions that ministers were drawing up comprehensive measures to help drivers cope with record pump prices
Families were warned last night there was little prospect of a lifeline on fuel prices ? despite repeated pledges from David Cameron.
Treasury Chief Secretary Danny Alexander said his department would not *?sacrifice income willy nilly? to help out motorists.
And he poured cold water on suggestions that ministers were drawing up comprehensive measures to help drivers cope with record pump prices.
He did reveal, however, that the Treasury was pushing ahead with a pilot scheme to offer discounted fuel to rural communities in the Scottish Highlands, which could extend to his own constituency of Inverness.
Mr Alexander appeared to rule out delaying the planned duty rise in April, which together with rising oil prices and inflation could put as much as 8p on a litre of fuel.
He suggested the plan championed by David Cameron for a ?fair fuel stabiliser? was beset with difficulties.
He said Treasury officials would give the proposal ?due consideration?, but warned: ?It?s a complicated idea and it?s difficult to see precisely how we achieve it.?
Currently, the average cost of unleaded petrol is around ?1.28 a litre, of which 58.95p is fuel tax and a further 21.35p is VAT. The fair fuel *stabiliser would mean that if the price of oil rises, then the duty levied by the Government would fall to reduce the pain for motorists.
But last night Mr Alexander said the need for the Treasury to protect its revenues was more important than helping out drivers.
The Liberal Democrat minister said: ?The biggest economic problem facing every household is the deficit. If we come off that deficit reduction plan, the risk to the country would be truly huge, so that has to be the first priority.?
His comments came as Energy Secretary Chris Huhne acknowledged that rising fuel prices could ?potentially have devastating effects on employment? ? but said fuel duty should be kept high in the long term for environmental reasons.
Experts forecast that the Treasury will rake in a ?2billion windfall this year as a result of soaring oil prices.
Motorists are having to pay record prices at the pumps after a government fuel duty was added ahead of the VAT rise
But Treasury officials claim this ignores the depression to the wider economy, and so tax revenues, caused by higher oil prices.
Mr Alexander said the Office for Budget Responsibility found that when oil prices rise ?revenue is lost in other areas?.
In recent days the Prime Minister has relaunched the idea of the fuel stabiliser ? a key pre-election Conservative pledge.
On Friday Mr Cameron said he believed the Treasury did receive ?extra revenue? when oil prices rise, adding: ?When that happens we should share some of that benefit with the hard-pressed motorist.?
Downing Street has said that Mr Cameron recognises the difficulties with the scheme but is determined to give motorists a ?fair deal?.
But Labour?s transport spokesman Maria Eagle said the Government was in ?chaos and confusion? over the issue.
Mr Alexander?s rural communities project would see fuel duty cut by 5p a litre in parts of the Highlands where, he said, residents have no choice but to travel by car.
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http://www.dailymail.co.uk/news/arti...p-drivers.html
basads
Warning: Danny Alexander, the Treasury Chief Secretary dismissed suggestions that ministers were drawing up comprehensive measures to help drivers cope with record pump pricesFamilies were warned last night there was little prospect of a lifeline on fuel prices ? despite repeated pledges from David Cameron.
Treasury Chief Secretary Danny Alexander said his department would not *?sacrifice income willy nilly? to help out motorists.
And he poured cold water on suggestions that ministers were drawing up comprehensive measures to help drivers cope with record pump prices.
He did reveal, however, that the Treasury was pushing ahead with a pilot scheme to offer discounted fuel to rural communities in the Scottish Highlands, which could extend to his own constituency of Inverness.
Mr Alexander appeared to rule out delaying the planned duty rise in April, which together with rising oil prices and inflation could put as much as 8p on a litre of fuel.
He suggested the plan championed by David Cameron for a ?fair fuel stabiliser? was beset with difficulties.
He said Treasury officials would give the proposal ?due consideration?, but warned: ?It?s a complicated idea and it?s difficult to see precisely how we achieve it.?
Currently, the average cost of unleaded petrol is around ?1.28 a litre, of which 58.95p is fuel tax and a further 21.35p is VAT. The fair fuel *stabiliser would mean that if the price of oil rises, then the duty levied by the Government would fall to reduce the pain for motorists.
But last night Mr Alexander said the need for the Treasury to protect its revenues was more important than helping out drivers.
The Liberal Democrat minister said: ?The biggest economic problem facing every household is the deficit. If we come off that deficit reduction plan, the risk to the country would be truly huge, so that has to be the first priority.?
His comments came as Energy Secretary Chris Huhne acknowledged that rising fuel prices could ?potentially have devastating effects on employment? ? but said fuel duty should be kept high in the long term for environmental reasons.
Experts forecast that the Treasury will rake in a ?2billion windfall this year as a result of soaring oil prices.
Motorists are having to pay record prices at the pumps after a government fuel duty was added ahead of the VAT rise But Treasury officials claim this ignores the depression to the wider economy, and so tax revenues, caused by higher oil prices.
Mr Alexander said the Office for Budget Responsibility found that when oil prices rise ?revenue is lost in other areas?.
In recent days the Prime Minister has relaunched the idea of the fuel stabiliser ? a key pre-election Conservative pledge.
On Friday Mr Cameron said he believed the Treasury did receive ?extra revenue? when oil prices rise, adding: ?When that happens we should share some of that benefit with the hard-pressed motorist.?
Downing Street has said that Mr Cameron recognises the difficulties with the scheme but is determined to give motorists a ?fair deal?.
But Labour?s transport spokesman Maria Eagle said the Government was in ?chaos and confusion? over the issue.
Mr Alexander?s rural communities project would see fuel duty cut by 5p a litre in parts of the Highlands where, he said, residents have no choice but to travel by car.
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http://www.dailymail.co.uk/news/arti...p-drivers.html
. thats green enough for me!
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