East Yorkshire MP Greg Knight has attacked calls for higher fuel taxes, made by a Labour Party-supporting policy group.
The Institute of Public Policy Research (IPPR), which has close links to the Labour Party and develops much of Labour policy, is also calling for road charging to be introduced and a greater use of so-called ‘congestion charging’ to raise funds for Government coffers.
Mr Knight said, “Action to help motorists at a time of recession and high international oil prices is crucial to protect communities living in rural areas and to help stimulate the economy. Pump prices are currently 10p a litre cheaper than if the Government had implemented Labour’s planned fuel duty escalator, and this is something my constituents and I welcome. This call for more taxes shows how out of touch Labour and their advisors are”.
Mr Knight added: “The UK already has the highest fuel taxes in the European Union. Sixty per cent of what motorists pay at the pump already goes straight to the Chancellor. In the light of this, it beggars belief that a London-centric think-tank – or should that be ‘non-think tank’ can be so out of touch with transport reality for millions of people across rural areas in Britain.
Mr Knight called for Labour leader Ed Miliband to ‘immediately distance himself from these proposals to hit motorists with even more tax’.
The IPPRs report was also slammed by the Automobile Association, their spokesman Paul Watters saying: “Far from raising fuel duty the Chancellor should continue to freeze it to help stimulate the economy and lift some of the fuel burden from families and business. Holding fuel duty where it is also protects those in rural areas who may be at risk of losing access to bus services”.
The TaxPayers’ Alliance is also calling for Chancellor George Osborne to continue to freeze fuel duty.
Mr Knight said, “This news will be welcomed by people in rural areas like East Yorkshire, who are dependent on the car to get to work, as many do not have access to public transport. What’s more, an increase in fuel prices would also damage small businesses, hiking up the freight costs of everyday household goods.”