Craig Bennett: Cutting fuel duty is not answer to rising motoring costs

WITH soaring fuel prices back in the headlines and motorists feeling the pinch at the pumps, it is little wonder pressure is mounting on the Chancellor to cut the cost of driving.

But while we agree rocketing fuel prices should spur the Government into action on motoring, cutting fuel duty is not the answer.

Most commentators agree high oil prices are here to stay, with many, such as the AA, predicting that they are likely to rise even further.

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For decades successive governments have done far too little to wean our transport system off oil, and motorists up and down the country are now paying the price for this failure.

And motoring isn’t just expensive. It’s also a significant contributor to climate change. Transport is responsible for about a quarter of UK carbon emissions – and a whopping 90 per cent of that comes from road traffic.

If we’re to meet UK targets for tackling climate change, our transport system must make significant emission cuts in the years ahead. If it doesn’t, other sectors will have to make even bigger reductions in theirs.

The truth is transport policy has been going in the wrong direction for far too long. A fresh approach is long overdue, and this must aim to wean our transport off of its dependency on expensive oil – much of which comes from extremely volatile parts of the world.

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Building super-efficient cars that burn less fuel is one obvious part of the solution. But while the average fuel efficiency of our motoring fleet has improved in recent years, it hasn’t gone far enough or fast enough.

Updated European fuel efficiency rules for new vehicles are due to be agreed later this year. UK Ministers must put pressure on both the EU and the motor industry – who have frequently sought to water down cleaner car proposals – to ensure that tougher standards are introduced.

The Government could also encourage fuel-efficient cars through Vehicle Excise Duty. By making road tax cheaper for cleaner cars (and more expensive for gas-guzzlers) they would reinforce the message that fuel-efficiency is the only way forward.

Electric cars could have a major role to play in a clean transport future, although much remains to be done before they become the common vehicle of choice.

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This must include a major increase in the use of clean British energy to produce the electricity to power them. Most of our electricity still comes from gas and coal – and as anyone who has recently stared open-mouthed at their domestic fuel bill will know, the price of these has also risen spectacularly in recent years.

Ministers must speed up investment in clean British energy, by developing the UK’s huge wind, wave and solar potential, creating thousands of new jobs in the process.

And motorists need affordable, efficient and attractive alternatives to driving too.

It’s crazy that over the past few decades the cost of using public transport has risen faster than the cost of motoring.

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According to Government figures bus and rail fares increased by 24 and 17 per cent respectively between 1997 and 2010, while the real cost of motoring – including vehicle purchase – fell by seven per cent.

Buses and trains are a congestion-busting alternative to driving and it’s vital they’re given full financial support to keep the country mobile.

We also need to encourage more people to use their bikes and legs by making these trips far safer. The majority of our journeys are less than five miles long and many of these could be easily walked or cycled.

With the Budget fast approaching the Chancellor can’t ignore the rising cost of motoring.

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Investigating ways to help poorer households in rural communities who are among the hardest hit by fuel tax rises, such as through targeted council tax rebates, is something that could be considered.

But Mr Osborne should resist the temptation to cut fuel duty and invest the money in a cleaner future and a transport system we can all afford.

* Craig Bennett is policy and campaigns director at Friends of the Earth

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