Taxes on Motor Fuel — [Julie Elliott in the Chair]

Hauliers are unable to pass increased fuel costs on to supermarkets, which may result in hauliers going out of business. This is putting pressure on the supply chain and threatening jobs where hauliers are significant employers.

Mr. Murray discussed the severe impact of increasing fuel costs due to inflation and highlighted real-life examples from a survey conducted by the Petitions Committee, including stories of reduced working hours for supply teachers and challenges faced by NHS workers and taxi drivers.

May I add in the views of the domiciliary care workers whom I met recently in Newport East? Collectively, care workers drive more than 4 million miles a day to care for the vulnerable in our communities. They fear that they may have to leave the profession because the cost of fuel is making it difficult for them to get to work. Does my hon. Friend agree that that can only add to the recruitment crisis in care?

Justin Madders highlighted the impact of fuel duty on his constituency, where a high percentage of people depend on private transport for work. He mentioned that 78% of people in Ellesmere Port and Neston use private motor vehicles to commute, which is 15% above the national average. He also raised concerns about the transparency around fuel price reductions and the impact of VAT increases on public services such as police cars, ambulances, and school transport. Mr. Madders questioned whether the increased VAT receipts exceeded the benefits from the fuel duty cut proposed by the Chancellor, seeking clarity on the Government's economic strategy.

If the Government are concerned that the fuel duty relief is not being passed down to the pumps, why is that not being addressed, and in the strongest terms? Does the hon. Member not agree that there must be consequences to ensure that the public are not ripped off at the pumps?

Fuel costs have broken records on 26 separate days in 022, with consumers paying over 80p in tax per litre of fuel. VAT is charged at 20% on the total cost of fuel, leading to significant revenue for the Treasury even as prices rise. A reduction in VAT would be more impactful than a cut in fuel duty as it affects the total price paid by motorists. The hon. Member expressed disappointment at the lack of Conservative speakers in the debate, highlighting the impact of rising fuel prices on constituents across the UK. Questioned the effectiveness of cutting VAT versus reducing fuel duty, proposing both cuts as potential solutions to help businesses and reignite the economy.

Retailers often have no choice regarding which distributor or wholesaler they use, leading to situations where retailers cannot pass on the 5p fuel duty cut, resulting in drivers expecting a price reduction that does not materialise. Mr. Grant highlighted the contradiction of Scotland being a major oil and gas producer while its citizens face high fuel costs, suggesting someone is profiteering from this situation. He emphasized that Scotland's remote areas suffer disproportionately due to higher travel distances and poorer road conditions, leading to increased fuel consumption per mile. He also pointed out the impact on essential services like school and healthcare access in these regions. Mr. Grant questioned why the Government does not regulate fuel prices at the pump as they do for electricity and gas. He criticized the current food distribution system and argued that VAT regulations should be reconsidered given the UK's departure from the EU. Asked if the Minister was suggesting that cutting VAT on fuel would lead to increased costs elsewhere for customers.