Anne McIntosh: High prices for drivers fuel despair in the countryside

Over the past few weeks, my constituency mailbag has been full with people who are desperate to see action taken on the high price of fuel.

Fuel is becoming an ever increasingly large part of their household bills and both individual motorists and families are hampered by their reliance on cars for everyday, necessary journeys, especially here in North Yorkshire where there are limited public transport options.

For many who live in Thirsk, Malton and Filey a car is the only means of transport and where substantial distances are covered for everyday journeys, whether it is attending a hospital appointment or doing a food shop.

Higher fuel prices suffocate an economy; they restrict growth and increase inflation. The price of everything we buy increases as fuel costs rise and nowhere is this truer than in rural areas where goods need to be transported large distances to communities and businesses. Currently the UK has the third highest price for diesel price in Europe and this increased burden on hauliers will only be passed on to all of us as customers.

Prior to the Budget in March of this year, I held an adjournment debate to highlight the hardships that rural communities and businesses are facing at a time of financial austerity.

Like countless motorists, I was therefore delighted when the Chancellor of the Exchequer in his Budget took action to help relieve the huge burden on families from the rising cost of fuel.

In addition to cutting fuel duty immediately by 1p, abolishing the full duty tax escalator and introducing a fair fuel stabiliser, the Chancellor announced that the UK would apply to the European Commission to introduce a remote rural rebate of 5p a litre for the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde and the Isles of Scilly.

Since then the European Commission has agreed in principle to these proposals and they will bring relief to both business and individual motorists in these islands.

I think the coalition Government should be applauded for recognising, at a time of record deficit in the public finances, that fuel plays such an important role in every aspect of people’s lives in remote and inaccessible regions.

However, I have been campaigning for some time that North Yorkshire, as one of the most deeply rural, sparsely populated regions in the country, should also be recognised in such a scheme. As anyone living in a deeply rural sparsely populated area such as Thirsk, Malton and Filey understands, vehicles are a necessity not a luxury.

Implementing a remote rural rebate is not without practical difficulties, chief among which is the impact on an open market. The European Commission makes it very clear that any rebate cannot undermine or distort competition in the market and should not be seen as a Government subsidy.

The maximum time period a rebate under European law can be implemented for is six years. Any relief therefore would not last forever, but would nevertheless be a very welcome temporary measure during difficult economic times globally.

There is also of course an inherent cost to the Exchequer involved in the loss in duty it would otherwise receive. Nevertheless, I do feel that in any considerations on the cost of fuel, rurality and sparsity factors should be taken into account. The Federation of Small Businesses estimates that there are some 6,000 small business in Thirsk, Malton and Filey, all of whom will be further squeezed by any rise in fuel costs. We should not forget that these small businesses are vital for our economy both in terms of wealth creation and employment.

At a time when motorists everywhere are calling for action to be taken on the high cost of fuel we should recognise that those in isolated mainland regions of the country are in need of assistance. Fluctuations in the pump price and wide differences in the fuel price between rural and urban areas are grossly unfair and need to be addressed.

I am delighted that there will be a backbench business debate in the House of Commons today on the cost of fuel following an e-petition which received more than 100,00 signatures. It is important that the concerns of everyday motorists are heard ahead of the Chancellor’s Budget Statement on November 29.

The Chancellor has a golden opportunity then to alleviate the pain and stress caused by high fuel duties felt so keenly in rural areas. Those living on fixed incomes such as pensioners and other low- paid workers are paying a huge proportion of their income just to fill up the family car. For the road freight industry, high fuel prices are particularly damaging and that pushes up the cost of food and other essentials.

George Osborne has proved that he does listen and acts accordingly. I hope he will do so again on November 29.