The UK government, through Chief Secretary to the Treasury Lucy Rigby, announced a comprehensive fuel duty relief package during an Urgent Question in Parliament, including extending the 5p per liter fuel duty cut for 5 months, cutting red diesel duty by over a third per liter to the lowest rate in over 20 years, and introducing a 12-month vehicle excise duty holiday for heavy goods vehicles, which together save the average motorist over £120 annually compared to inherited plans.
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WATCH NOW: Explosive Urgent Question Lucy Rigby Grilled Over Fuel Duty and Cost Crisis | AC14Added:
processing, um, of timber. So, what we need to look at is how we can encourage more investment, um, in the sawmills and downstream processing industry.
Just to say, the first question, Harriet Harman, she was on the order paper, she had withdrawn. I want to reassure the house. It was a mistake that was made, and we were following the agenda.
Hopefully, it won't be repeated again by the Table Office. Right, we'll let the front bench change over.
Before we come to the urgent Sorry, before we come to the urgent question, milometerist, the urgent question I'm going to repeat what I said to the house at the start of the parliamentary session.
The government's own ministerial code makes it clear that important policy announcements should be made in the first instance to this house when it's sitting.
Some people seem to have very short memories.
We've had the last 3 days of this announcement being drip-fed to the media.
This is not in line with the government's own rules, and it is unacceptable. These backbenchers of either side are elected to this house to hear it first, not to be outside of Morrison's petrol station, not to be on a bus, not doing it to TikTok.
These members should be respected. I hope all this house, and I respect the members, if the government doesn't. The government's got to get its act together, and recognize the value of its own backbenchers.
Right, we now come to the urgent question. Sir Alister Jack, to ask the Chancellor. Thank you, Mr. Speaker, to ask the Chancellor of the Exchequer if she will make a statement on the government's plan for uh the costs to motorists.
Lucy Rigby.
Mr. Speaker, just to note that your comments just then are fully noted and I'll ensure that they're fed back to the entirety of the um ministerial team. Um Mr. Speaker, the government's taking steps to support households and businesses with their fuel costs in response to the conflict in the Middle East. A rapid de-escalation uh in the Middle East remains the best way to bring down fuel prices where the most impactful step is of course to reopen the Straits of Hormuz. That's why exactly why the UK government's playing a leading role in the international effort to get shipping uh flowing freely. And indeed, I contrast that with the position of the leader of the opposition who would have um rushed us to war. So, alongside alongside this key step, Mr. Speaker, So, yeah, so the boys club Sorry.
I can't I can't hear what the minister's saying. And in fairness, we put the urgent question in which we can hear the minister. Look, I'm proud of this parliament. I'm proud of this country, so I do want to hear it, minister.
Yeah, so alongside this key step, Mr. Speaker, the government's priorities will uh continue to be helping families with the cost of living, including through protecting the public finances.
The government's taking action to bear down on prices at the pump, and in November we extended the 5p per liter cut in fuel duty for a further 5 months.
Right now, uh petrol and diesel are 11p per liter cheaper than under plans inherited from the previous government.
Some fuels have been more impacted than others by this conflict. We recognize that, and the government also recognizes the pressures being faced by drivers and other fuel users. That is exactly why we are introducing a package worth over 400 million pounds, which combines broad support for motorists with targeted support for sectors most exposed to and affected by higher fuel prices. And yesterday the Prime Minister made clear that we will not increase fuel duty this year. The temporary 5p cut will be extended until the end of the year. And taken together, the government's decisions will save the average motorist over £120 this year compared to plans inherited from the previous government.
But [snorts] we also recognize, Mr. Speaker, that farmers face substantially increased costs on fertilizer and fuel.
And that's why we're going further, cutting the duty rate on red diesel by over a third per liter to the lowest rate in over 20 years. And that, of course, will help other users of red diesel, too. And then, when it comes to road haulage, this sector, as members will recognize, is vital for transporting goods right across the country. And recognizing that key role and the increased costs that the sector's facing, we are introducing a 12-month holiday for vehicle excise duty for the majority of heavy goods vehicles. This will save, Mr. Speaker, a typical HGV over £600, up to £912 on some vehicles, on top of the savings that I just described when it comes to fuel duty. So, Mr. Speaker, to conclude, this is one part of support for households and businesses. It combines universal support for motorists with targeted support for those most affected by higher fuel prices. And my right honorable friend, the Chancellor, will update the house later on today on further support measures for households and businesses.
Shadow Chancellor, Rachel Reeves.
Mr. Speaker, may I begin by agreeing with you and to say that how disrespectful it is that this U-turn on fuel duty has already been released to the media earlier this week. The news was plastered across national newspapers on Monday. And the Chancellor then conducted a visit to a petrol station yesterday with journalist, but it has taken until today for this house to be updated. This is a pattern, Mr. Speaker, including, of course, the relentless briefings before the budget last year about tax measures and fiscal forecasts.
You would think a government with so little support amongst its own backbenchers would have more respect for this place.
Mr. Speaker, this change to fuel duty is yet another humiliating U-turn from a Chancellor and Prime Minister whose authority is shot.
The Chancellor fought us tooth and nail on this issue. The Conservative Party has been campaigning for a fuel duty freeze for months. The Chancellor repeatedly rejected those calls, creating unnecessary uncertainty for motorists and businesses.
Why did it take her so long to realize that putting up fuel duty during an energy crisis is a bad idea?
Does the Chancellor really expect us to believe that this is all only happening, as she has suggested, because of better growth? Let's be clear, Mr. Speaker. The Chancellor has been pointing to the slight upward revision in the IMF's growth forecast earlier this week. That forecast was for growth of 1.0% but until April, the IMF were forecasting growth this year of 1.3%.
So, where is the supposed growth dividend? And perhaps the honorable lady could address that momentarily. Is the Chancellor seriously suggesting that the outlook is better now compared to how it looked at the last fiscal event? And on wider measures, Mr. Speaker, will the Minister confirm whether what has also been briefed to the press, not to this house, that HMRC mileage rates are to be changed? Mr. Speaker, let's be clear.
This is a government lodging from one U-turn to the next. Their mismanagement has left our economy weak. The reality is they're in no position to support people through these cost of living pressures because they have mismanaged the economy. They have no credibility left and clearly they have no respect for this house.
Mr. Speaker, um put simply, as I said, his party had motorists hurtling full speed towards higher fuel costs. It's only because of the action that this government has taken that we've applied the brake to the height that his party would have would have introduced. They would have introduced, Mr. Speaker, higher costs. We are lowering we're keeping the the freeze on fuel duty and protecting millions of motorists right across this country. And exactly as I said, we're taking further measures when it comes to red diesel and for HGV drivers as well. And this is on top, Mr. Speaker, of additional action that we're taking on the cost of living. The Shadow Chancellor and I saw each other in the studios early this morning when I was out there talking about the free unlimited bus travel for children that we're going to be The Chancellor is going to be updated updated on this earlier today.
Sorry. Sorry.
You said to the Minister, I don't think it's a good example that we were sitting in the studios rather than telling this house. It's confirming my problem that you somehow that Sky or BBC is more important than the back benches who've been elected by constituents across this country are hearing it second hand. It is not acceptable. So, don't think it's a bonus to tell the house nice.
Speaker, the Chancellor will be coming along to the house further later along today. And she's going to Order. Order.
Order.
I think the point I was making was that you said that you were doing the studios. You're here now. I think it should have been here first. Do we both agree, Minister? me stop. Speaker, my apologies. I was intending to say just then that the Chancellor will come to the house and will give a full statement on exactly everything including the matters that we are discussing today.
I'm sorry, Mr. Speaker, that the Shadow Chancellor is so upset and so appalled by the recent growth figures. I am in the business of talking this country up rather than down. And indeed, I'm grateful to him for highlighting that growth has been revised up. Interest rates are coming down. Inflation is coming down. Real wages are going up.
And as I said, um Mr. Speaker, this is because of the prudent decisions that this government has has taken. All of which is allowing us to take further action when it comes to the cost of living. But this this action that we're taking in relation to fuel duty is very very important and it's going to save millions of motorists um lost money right across this country.
>> [snorts] >> I will address, Mr. Speaker, that the point on HMRC um mileage the Chancellor will come to this house, as I said, later on and talk about the full package.
Member for the business committee. Thank you, Mr. Speaker, for facilitating this statement. I welcome the announcements on fuel duty, but I didn't hear uh the Chief Secretary say anything about remedies for the new costs on drivers of electric vehicles. Uh those new costs imposed at the last budget are suppressing demand for electric vehicles in our country to such an extent that UK auto makers having to subsidize demand by 5 billion pounds a year. That is imperiling the future of UK auto makers.
It is imperiling the target of doubling automotive production by 2035. So, can we have a statement about what the government is going to do to reform the ZEV mandate and actually get in place a plan that leads to a thriving auto industry and not a dying auto industry.
Minister. Mr. Speaker, my honorable friend makes a very um important point and I know how passionate he is about exactly these issues. He refers to changes that were made at budget and they were made with the best of intentions and from the point of view of encouraging the use of electric vehicles in this country. I believe the Chancellor may be saying something on that later on today.
Daisy Cooper, Liberal Democrat spokesperson. Thank you, Mr. Speaker.
Like so many Labour government announcements, the extension of the fuel duty relief later this year is too little, too late. And when we look around the world, other countries are acting now. Other countries are cutting fuel duty now. Other countries are cutting public transport costs now. And that is why we Liberal Democrats continue to call on the government to cut fuel duty and public transport costs now. So, what message does the Minister think it sends to people that they'll take action later in the year when they are feeling the pain in their pockets right now. When it comes to farmers, Mr. Speaker, the government will be aware that the cost of fertilizer is going through the roof and world prices are up by 44%.
So, when the Minister says that there'll be a further cut to red diesel, can I ask the Minister what assessment her government has made of the cumulative impact of the war in Iran on farmers because it's clear to me that this cut in red diesel will not touch the sides when the cost of fertilizer is rocketing through the roof. Minister. Mr. Speaker, the honorable member makes a really important point about the cost that farmers are facing. But, that's exactly why we're taking the steps that we're taking in relation to red diesel, which is going to cut the duty by a third, more than a third, and it's the lowest rate in over 20 years. And as I said just earlier, Mr. Speaker, that doesn't just help farmers. Of course, that's going to help other sectors too in terms including including in relation to freight. But, I'm afraid, And Speaker, as is so often the case, we hear suggestions from the Liberal Democrats, cut this, cut that, you know, try and bring try and bring things down. The reality No, do not. The reality is that these things are never they're never funded. And if you're going to manage if you need to you manage the public Mr. Speaker, sorry.
The member has asked the question. I want respect given to the Minister when she's answering the question, please.
Thank you, Mr. Speaker. The point is that you have to manage the public finances in a responsible way. You can you cannot take you can't put measures in place which are not fully funded. And I wish that in some of these proposals that were being put forward, they were adequately backed up by fully funded proposals.
Jim McMahon. Thank you, Mr. Speaker.
These are welcome announcements and I should say to welcome the Chief Secretary to her to her place. The government also has a very important convening power. And one thing that residents in Oldham raise all the time is just how much they pay for car insurance when compared to other areas.
And for local paid workers, particularly those that need it for business, and pay that additional premium, it is a lot of money going out every single year above and beyond what neighboring areas will pay. So, can I ask the Chief Secretary to convene the insurance industry together and see what can be done to finally address this postcode lottery?
Minister. Mr. Speaker, my honorable friend raises a a really important issue and I'd like to thank him for all the work which I know that he's done in this space exactly from the point of view of trying to bring down the cost that that people across the country are paying. In my old role as Economic Secretary to the Treasury, I was indeed closer to the work of the insurance sector and the work which the current Economic Secretary is now taking forward to try and ensure that prices are brought down.
But I'm more than happy to convene with the new Economic Secretary and take forward the work that he suggests. Full back.
Thank you, Mr. Speaker.
Obviously, the the Minister is not aware that the previous conservative government froze fuel duty for 14 years.
Otherwise, she wouldn't be coming along.
And and some of us lobbied for the government of the day to actually abolish the escalator, but we didn't do it.
However, could I ask her one key question? And that is with the rise in the wholesale price of fuel at the pumps, how much extra money has the Treasury obtained as a result?
Mr. Speaker, I'm afraid that the honorable member has entirely missed the fact that the plans that his government left in place would have meant that fuel duty would have gone up. And it is only because of the action that this government is taking that means that millions of motorists across the country will save money.
Just in matters. You, Mr. Speaker, can I welcome the efforts to support drivers at the petrol pumps. But it's it's obvious that this is not led to an increase in demand in the sales of electric vehicles. As the uh chance select committee has already said, the automotive sector is facing a real crisis because of the Z mandate. I was at the Vauxhall plant in my constituency last week. There isn't the consumer demand there. There isn't going to be the consumer demand there to meet the escalating demands of the Z mandate. Can the Treasury please use their convening power across government to bring forward the review of the Z mandate?
Minister.
Mr. Speaker, I appreciate as I said earlier in response to my honorable friend, this is a really important issue and I know indeed what an important issue it is to my honorable friend and and in his constituency as well. And as as I said, I'm more than happy to to take this up and I'll discuss this with the Exchequer Secretary. Mr. Chaplin.
Thank you, Mr. Speaker. Increased fuel costs are a real pain point in a constituency like mine. Rural households that depend on their cars spend nearly £800 a year more on fuel than people who live in urban areas. So, will the government listen again to the Liberal Democrats' demands for an immediate 10p cut in fuel duty that would bring down pump prices by 12 p per liter?
Minister. Mr. Speaker, I think these suggestions are being made with the best of intentions, but it with the deepest respect to the honorable member, this is all motherhood and apple pie. You have to be able to say where this money is going to come from if you want to do these nice things.
Gillian Keegan.
Thank you, Mr. Speaker. Um can I thank the Minister and my right honorable friend the Chancellor for recognizing the important role that hauliers and freight play in our national economy and our local economies. The steps announced yesterday are here to support 3,500 um people in my constituency who work in transport and logistics. And these are the people that keep our shelves stocked and our economies moving. But can I ask that the Minister liaises with um her colleagues in other government departments to look at what other support could be made available for the logistics sector, including improved welfare facilities?
Uh Mr. Speaker, my honorable friend raises a a really important issue in relation to um haulers hauliers and indeed the road hauler sector. That's why um what we're talking about uh today is so critical when it comes to the cost that hauliers are um paying and vehicle excise duty, which of course is on top of uh the changes that we're making to fuel duty to save um save hauliers money. Um that is part of our recognition um of the really critical role that hauliers play uh in costs, including of consumer goods. Uh so, this all this all fits together, and I recognize um that you know, how important it is uh to her constituency.
Them Harriet Baldwin.
Thank you very much, Mr. Speaker, and rural drivers in West Worcestershire will be delighted that the Chief Secretary has seen the political reality, which is that it would have been mad to put another 5 p on petrol on the 1st of September. But, could she also explain something else that would seem very, very, inexplicable to my constituents, which is why we are not allowing oil and gas extraction from our own basin, but we are allowing an increase in terms of Putin-produced oil and gas?
Yeah.
Minister.
Mr. Speaker, I'm I'm grateful to the honorable member for her question, but I would ask her by reply that if it was so mad, why was it her party's intention to do exactly that when it comes to fuel duty? On oil and gas, we've been very clear that oil and gas will play a part in our fuel mix for for years and years to come.
Other jobs. Mr. Speaker, the Tories oversaw the only Parliament in history where living standards were lower at the end than they were at the start. This government, by contrast, got wages up more in a year than the Tories did in a decade, with growth and inflation rates better than forecast. Does the Chief Secretary agree with me, then, that our economic plan is the best possible when it comes to delivering for my constituents in Erewash, very much including their interests as motorists?
Minister.
Mr. Speaker, I'm grateful to my honorable friend for his question, and it's because of these fiscally responsible choices that the Chancellor has made that we've seen growth going up, we've seen real wages up, we've seen inflation down, and interest rates down, as well. And look, these things do not happen by accident. They're because of the fiscally responsible way that the Chancellor is managing our economy, and that is fiscal responsibility for a purpose. That purpose being to support working people right across this country.
Charlotte Nichols. Thank you, Mr. Speaker. Mr. Speaker, may I first of all welcome the right honorable lady to her new role in the cabinet. She was an excellent colleague when she was on the NATO Parliamentary Assembly and it doesn't surprise me that she's the first to ever intake to make it. So, it's in that spirit, Mr. Speaker, that I hope to be able to help the honorable lady in right honorable lady in marking her career out because 90% of my constituency is rural and fuel increases do worry people and they don't put that money into the economy cuz they don't know where it's going to go. So, [snorts] could the right honorable lady do something which should have been done under the last conservative government, but she has an opportunity under this Labour government. Let's just say we're not putting these false figures for raising fuel duty in cuz it never happens and it would be a much better boost to the economy if people had certainty about their fuel costs.
Minister.
Mr. Speaker, I'm I'm very grateful indeed to the honorable member for his kind comments and I appreciate where he's trying to go with his with his remarks. But, what we are doing with this announcement is saving the average motorist over 120 pounds this year compared to the plans that we inherited and in saying as the Prime Minister did that we are going to extend the cut until the end of the year, until the 31st of December, we are trying to give people that bit of certainty and that bit of reassurance because we recognize that family budgets are really stretched at the moment and indeed that is the reason why we're taking this measure, but plenty of other measures too to try and help people with the cost of living.
Patricia Gibson. Thank you, Mr. Speaker.
Does the Chief Secretary agree with me that it's right that we didn't rush into the Iran war and it's right that our government's plans and actions to support households are responsive to changing events rather than being knee-jerk reactions which end up causing more damage to our economy in the longer term?
Minister. Mr. Speaker, I'm grateful to my honorable friend for for those comments and I think it just highlights again that the party opposite would have raced to war. And when I said that earlier, Mr. Speaker, they all And they're doing it again. Look, they're shaking They're shaking their heads at me. The reality is the leader Well, okay. So, either of two things are true.
So, either the leader of the opposition said that she would have taken us into the conflict, and she didn't And she didn't mean it, in which In which case, she that she really really confused, frankly. Or she said it and she meant it, in which case, that is demonstrative of really catastrophic judgment. But I would say, Mr. Speaker, that either of those things, be it catastrophically bad judgment or indeed deep confusion, neither of those things are ideal qualities on someone that wants to run the country.
And the Chamberlain.
Mr. Speaker, the government has repeatedly pointed out to the Fuel Finder website as the best way to keep prices low through competition. But in my own constituency of North East Fife, costs have gone up so much that there's basically no variation between the pumps. And those high prices are crippling for everyone, but particularly local businesses like the fish fish merchants from the East Neuk, who go far and beyond North East Fife to deliver to customers directly. Driving isn't avoidable for a constituency like mine.
And the government is obviously not looking at the support beyond red diesel in rural constituencies? What about EV charging, for example, where often in constituencies like mine, people have to charge away from home because they need their car car to get about the constituency.
Mr. Speaker, I'm grateful to the honorable member for those comments. And not least the the reference We are, I I should say, supporting motorists in a meaningful way. But it's really important She mentions the the CMA's Fuel Finder scheme. Now, the intention of that is to save households that own a car around could be up to £40 a year. And she's absolutely right that the key principle behind that is about competition. And we know that competition is the way that we get to greater choice and indeed lower prices for consumers.
What do we call David Mundell of Dumfriesshire. Thank you, Mr. Speaker. Can the Chief Secretary reassure me that the Treasury does really understand that in rural areas, the cost of fuel does doesn't just relate to what most motorists pay for driving. It affects everything that is on sale in the shops, all goods and services provided. And therefore, rather than trying to put caps on the cost of things that are on sale in shops, the the best way in rural areas to help keep costs down is to keep fuel costs down.
Minister.
Mr. Speaker, I'm grateful to the honorable member for those comments.
But I have to tell him that we are not attempting to cap the prices that you see in supermarkets, nor were we intending to. What is happening is that the Chancellor is having discussions with supermarkets, as indeed she is with other sectors, with a view to putting downwards pressure on prices and helping people with the cost of living. Because as I've said repeatedly, we on this side of the house recognize that there's a cost of living crisis out there, not least because of the inheritance that we received from the party opposite. And we are seeking to help people with those costs.
Hannah Bardell. Thank you, Mr. Speaker.
Can I thank my right honorable friend for recognizing and supporting hauliers and logistics companies like the Malcolm Group, the UK's leading independent provider of third-party logistics services, who are based in my constituency and support many hundreds of jobs across Paisley and Renfrewshire South. They play such an important role in keeping our shelves stocked and our economies running. But can I echo calls made by my honorable friend, the member for Bathgate and Linlithgow, for us to go further in supporting greater welfare facilities for their drivers. And can I also ask that she make some comment on the safety of logistics staff, who too often are manning vehicles that are being targeted by criminals? I'm going to help the Malcolm Group in my honorable friend's constituency, as indeed they will all years right across the country. But my honorable friend, as indeed others too, Mr. Speaker, raises a really important point around welfare. And indeed, I think she was alluding to to freight crime. And so, this is something that I know has been discussed at length in in this house. It's something that I'm particularly interested in, given the nature too of my constituency. I know that the government is taking forward action to seek to deal with to freight crime, and indeed on welfare too. But I'm more than happy to convene a meeting with honorable ministers, and indeed my honorable friends, in relation to this issue. Sir Peter Mr. Speaker, does the government minister agree with me that one of the government's main responsibilities is to provide energy security for its citizens? And as a nation resplendent with our own resources, why will this government not issue more licenses to drill in the North Sea for oil and gas, which would make us energy sufficient, and therefore have a knock-on effect at the pumps?
Mr. Speaker, the best way to get to energy security is to by doing exactly what the Secretary of State for Energy is doing at the moment, and the push towards renewables. I have to tell her, I'm afraid, the new licenses in the North Sea wouldn't bring new oil and gas on stream for another 10 years. So, that really is the wrong solution.
Precisely. Precisely. Mr. Speaker, the freezing fuel duty will be a relief to drivers in Northeast Hertfordshire. But part of the reason why this is such a problem is because after the party opposite's last stint in government, public transport was left virtually non-existent in rural communities like mine. We've discussed earlier this week the enormous cost of HS2, over 100 billion pounds. If we were investing that scale of money in bus services, we could provide a vastly improved network across the whole country for decades to come. So, will the government learn the lessons of the current crisis and redirect our public transport spending towards the journeys we need to make in our day-to-day lives?
Mr. Speaker, my honorable friend raises a a really important point about the critical nature of bus services to the entirety of of the country, and that's exactly why we're providing over 3 billion pounds for buses over the next 3 years to cap fares at £3, and indeed to maintain and improve services as well.
So, that includes funding for local authorities so that they can put in place initiatives when it comes to local fares if they wish to do so, as I believe the Northeast Combined Authority has done. But, we're also making reforms, Mr. Speaker, when it comes to bus franchising, which will allow new and better services to Mr. Speaker, Mr. Speaker, I just want to come back to what the Minister said earlier on about the war in Iran. Um, she knows full well that the leader of the opposition did not say that she would take us into this conflict, and she knows full well that the operation She knows full well that the operation was a no-fly operation, and there was never an opportunity for the UK to be involved. And if she doesn't know that, she should go and speak to the defense team and get up-to-date with the details.
But, on that, I think it's a cheek considering that the government has just decided it's going to row back on its pressure that it's going to put on Russia. So, can she explain exactly why, given her media round this morning, which didn't explain this, exactly why the government has decided to exempt oil and oil products that originate from Russia under commodity code 2709 or from 2710?
Mr. Speaker, I wholeheartedly reject any accusation or idea whatsoever that we are somehow going soft on Russia and on Putin. That is completely wrong and the new package of sanctions that we've introduced it are stronger today.
>> Oh, oh, sorry.
I told the front bench and I'm telling the back bench you've got the you've had the courtesy being able to ask a question. I want you to hear the answer and I need to hear the answer as well, Minister.
The package of sanctions that are in place today is stronger than the package of sanctions that was in place last week. We have a world-leading sanctions regime in this country. At the moment we have more than 3,300 sanctions of Russian entities, businesses, individuals, ships. The list goes on and on and why does it go on and on? It's because of our steadfast support for Ukraine.
Very loud there.
Speak up.
Uh Scotland is an energy superpower and it's particularly galling there for for constituents and businesses in my own constituency which is a 2 and 1/2 hour drive end to end and where the road vehicle is an absolute necessity to conduct daily life uh to face the places that they're currently facing.
Uh will the government commit to using the hundreds of millions of pounds of extra tax revenue they've got in VAT to uh VAT freeze for the duration of this current crisis? Aye, aye. It's going to be a long Minister.
Mr. Speaker, I won't commit to that, no.
Thank you, Mr. Speaker. Whilst it's good news that the Chancellor has been forced into another humiliating U-turn over an increase in fuel duty, this just delays this just delays increase until the end of the year. But the cost of living is surging and families are feeling the pinch in every aspect of their life. So, why won't the government simply put people and businesses with give them the certainty they need and cancel the fuel duty increase altogether?
Mr. Speaker, there's absolutely nothing humiliating about taking action that the Chancellor has taking, the Prime Minister is taking, to protect millions of motorists across this country. And again, I'm afraid I have to remind him the plans that we inherited from the previous government would have seen motorists paying more.
Trash the box.
Thank you, Mr. Speaker.
I welcome this latest U-turn by the Chancellor to freeze fuel duty, which will help my constituents.
And I also welcome the cut in duty in red diesel to help our farmers.
The government's carbon border adjustment mechanism comes into effect on the 1st of January.
This will increase further the cost of fertilizer, which in turn will push up the price of food.
So, will the Chief Secretary undertake a review of that carbon border adjustment mechanism to protect all our constituents from further food price increases?
Minister, Mr. Mr. Speaker, I'm grateful um for that intervention and particularly the highlights when it the highlighting of the moves that we're making when it comes to red diesel.
Because he mentions the fertilizer cost.
Now, we know that those substantially increased fertilizer costs, but also fuel, are hurting farmers. We know that and that's exactly why we're taking the measures that we are when it comes to red diesel. So, cutting the duty rate by over a third per liter um from just over 10 p to just um to 6 and 1/2 p, which as I said previously is the lowest rate for over 20 years.
Mr. Speaker, can I warmly welcome the Minister to her new role? My rural North Cornwall constituency doesn't have a regular or reliable bus service. It doesn't even have a single mainline train station. So, my constituents are forced to rely on their cars to get to school, work, care for relatives, not to mention the transport of goods.
I welcome this modest freeze, but please will the Minister meet with me to discuss North Cornwall being part of the government's rural fuel duty relief scheme. And while we're there, perhaps I can explain how our excellent Lib Dem proposals are all fully costed.
Uh Mr. Speaker, I'm very grateful to the honorable member. I may ask that our meeting, when indeed we do meet, as I'm happy to do so, is fully focused on the matters at hand.
Happily, Thomas. Mr. Speaker, having worked in the oil industry, I understand the flow of oil products around the world quite well, and it's unquestionable that the government has eased the prospect of Putin's oil flowing into the UK's oil market. That's beyond doubt. So, two questions to the minister. One, can she explain the Treasury's calculation of the extent to which they think this move may benefit UK motorists? Can she explain why the government has decided to do this? And can she tell us what she thinks the cost will be to the government's integrity and whether it's worth it?
I assume he means, Mr. Speaker, when he says to do this in relation to the licenses in the sanctions regime.
Yeah, okay. Just clarifying. Look, these licenses are specific, they are targeted, and they're going to be reviewed on a very regular basis. The reason, and he'll know, given that he understands the flows of oil so well, he'll know that licenses are a very, very common part of the sanctions regime. So, the reasons that these licenses the reasons that they're put being put in place is such that we can such that we can stage the impact on the economy. And indeed, if you look at what the European Union is doing in relation to these issues, they're going to achieve a full ban by the end of 2026.
They too are staging the impact. So, this is a sensible measure when it comes to our economy. But what is not what is not in doubt, what is totally beyond doubt, is the is the fact of our steadfast support for Ukraine, as I said, and the pressure that we are continuing to put with our international allies on Vladimir Putin.
That completes the urgent question like the front benches change over.
Come to business questions. Shall we do the house? Jesse Norman. Thank you, Mr. Speaker. Will the leader give the house the forthcoming
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