Motorists in rural areas face blow over fuel prices

HOPES that motorists in rural Yorkshire could benefit from a fuel discount scheme look set to be dashed amid suggestions Government aid will be directed towards more remote areas of the nation.

As motorists and businesses struggle to meet soaring prices at the pumps, Ministers have held up the prospect of the discount for isolated areas as a way of helping people more reliant on their own transport and where fuel is often more expensive.

But there are concerns rural parts of the region may miss out on discounts of up to 5p per litre – if the scheme were to prove workable – because the region would not be deemed remote enough, with aid targeted at mainly island communities and places such as the Scottish Highlands.

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Deputy Prime Minister Nick Clegg, whose party initially came up with the discount idea, has fuelled those fears by telling regional journalists: "We are definitely committed to delivering on commitments in the Coalition Agreement to try to provide an exemption for people who live in very far-flung remote, particularly island areas."

Now MPs are stepping up their pressure on the Government to ensure rural parts of North Yorkshire will benefit from any measures.

Anne McIntosh, Tory MP for Thirsk and Malton and chairman of the Environment, Food and Rural Affairs Select Committee, said: "It should be done on price, and in my experience you can't get diesel below about 135p in Yorkshire.

"I think we've got to make the case for Yorkshire to be included. I would have thought rural parts of North Yorkshire, County Durham and Northumberland would qualify."

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Skipton and Ripon Tory MP Julian Smith said: "I'm making representation to Government and would hope North Yorkshire – the most rural county in England with very far-flung areas – would be under consideration as part of any rural rebate scheme.

"I hope – given the large amounts of money the English taxpayer pays to subsidise Scotland – the English regions would also be given a fair hearing because the fuel issue for my constituents is the number one item in my mailbag whether for businesses or home owners."

Huge rises in petrol and diesel prices have put a major strain on household budgets and businesses reliant on transport, with rural areas hardest hit because of more patchy access to public transport.

Ministers are already under pressure to use the March Budget to postpone or cancel the next rise in fuel duty, due in April, and yesterday the Society of Motor Manufacturers and Traders called for a duty freeze.

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Conservative MPs have been pressing Ministers to fulfil a pre-election pledge to introduce a fair fuel stabiliser, which would reduce the amount of duty collected by the Treasury when oil prices rise.

Prime Minister David Cameron was pressed on the issue – which Treasury officials are investigating – again yesterday, although there are fears it could be too complicated and Mr Clegg warned: "We don't yet know whether it is as workable as some people claim."

The Treasury wants to pilot the rural discount in the Inner and Outer Hebrides, the Northern Isles and the Isles of Scilly, but it needs permission from Europe and progress in negotiations is slow.

Government officials have not confirmed what other areas would be included if the pilot were to be successful but the Treasury said the trial areas were chosen "because of the high costs of transporting and distributing fuel to remote Scottish islands and the Scilly Isles, the long distances and the lack of alternative transport options in these areas".