Brussels urged to approve Dales fuel discount

Treasury Secretary Danny Alexander said the Hawes district of North Yorkshire is one of 10 far-flung communities across the UK which the Government believes could qualify for an unprecedented rural fuel discount.

If approved by the European Commission – which has strict rules governing state aid – pump prices could be cut across the area as early as next year.

“This is absolutely wonderful news,” said Councillor John Blackie, the leader of Richmondshire District Council. “It is a real boost for those of us living in the deeply rural upper Dales.

“It would make a huge difference with the cost of living, and it is some welcome recognition of the discrimination in prices that rural areas face.”

The announcement represents another major step forward for the Yorkshire Post’s Give us a Fair deal campaign, which has been calling for a fuel discount for the region’s most remote areas.

Pump prices are typically significantly higher in the countryside, but people are far more reliant on their vehicles due to the huge distances between villages and the paucity of public transport. The high cost of petrol is frequently cited by people in rural areas as the biggest challenge they face.

The Government accepts there is a problem, and launched a pilot 5p a litre discount scheme on the Scottish islands last year.

The Treasury said it will publish evidence this morning to show the scheme has been a success, before submitting its application to Brussels for the pilot to be extended to the rural mainland.

“As a Highlander, I know all too well that fuel prices tend to be highest in areas where a car is needed the most,” said Mr Alexander, a Liberal Democrat Minister who represents a constituency in the Cairngorn mountains.

“We have put together the strongest possible evidence base to try and maximise the places that get it. It won’t be easy to get this agreed with the commission, but I will do everything I can to make this happen.”

If the plan is approved next year, prices will be cut by up to 5p a litre at petrol stations across a 14-mile stretch of Wensleydale with the “DL8 3” postcode – taking in Hawes, Bainbridge, Askrigg, 
Aysgarth and West Burton.

The area has a resident population of about 1,500 people – although many more motorists in the surrounding villages may choose to take advantage of the cheaper pump prices.

“I would say the petrol station at Hawes serves an area of about 200 square miles,” said Coun Blackie.

Ian Bown, who runs the Dale Head Garage in Hawes, said a fuel discount would have a “massive impact” on the local economy and could make the difference between his business remaining viable or disappearing altogether.

Petrol prices at the garage yesterday were 141.9p a litre for petrol and 146.9p a litre for diesel.

“Every year I’ve been here we’ve seen our turnover fall,” he said. “Our prices are about 10p a litre higher than the supermarkets, but I’ve got no choice about it.

“When you consider people have to drive 60 miles for appointments at the James Cook (Hospital in Middlesbrough), you can see what a difference this makes.”

The Yorkshire Post began campaigning for a fuel discount to be extended to the region’s most remote areas in 2011. In July 2012, David Cameron revealed that work was “under way” for the pilot to be extended to North Yorkshire, and that he hoped plans would “progress swiftly”.

This summer the Government began gathering evidence from rural areas to see which might qualify under Brussels’s criteria.

The commission says areas will be judged on the cost of fuel locally, their distance from a fuel refinery, and the density of the local population. Hawes was one of three areas in England to be put forward for the discount, along with towns in Cumbria and Devon and seven in rural Scotland.

There was dismay, however, in neighbouring Ryedale, where local MP Anne McIntosh has led the campaign for pump prices to be reduced.

The Government said her constituency of Thirsk and Malton would be unlikely to qualify under the EU criteria and so will not be put forward for the discount.

Miss McIntosh said last night she was “deeply disappointed”.

Labour pointed out that eight of the 10 districts chosen for 
the discount have Lib Dem 
MPs, and that two were in Mr Alexander’s own Scottish constituency.

Catherine McKinnell, Labour’s Shadow Economic Secretary, said: “The public will want to be reassured this is no more than a coincidence – nobody will thank a Lib Dem Minister who refuses to tackle the cost of living crisis everywhere but his own back yard.”