Following on from Labour's claims that people have paid 3p more on every litre of petrol because of a rise in VAT. the Liberal Democrats responded by releasing Treasury figures showing, they say, how much motorists would actually be paying if the Coalition did not take action to reverse Labour's fuel plans. It follows Danny Alexander's calls to for petrol and diesel distributors to cut prices further after recent declines in the cost of oil.
A Liberal Democrat source said: "If this is how Labour do maths it's no wonder they crashed the economy and forget to talk about the deficit. The truth is if we did not axe their plans to increase fuel taxes by inflation, scrap their fuel duty escalator and cut fuel duty ourselves, motorists would now be paying 20p a litre more at the pumps. Only Liberal Democrats are building a stronger economy and giving a fair deal for motorists."
Treasury figures
- At the 2013 Autumn Statement the Chancellor cancelled the fuel duty increase that was planned for 1 September 2014, freezing fuel duty the remainder of parliament.
- In 2011 the Chancellor abolished Labour's fuel duty escalator, which would have increased fuel duty by one penny per litre above inflation in each year of the parliament.
- By the end of parliament the Chancellor will have been frozen fuel duty for nearly four and a half years, the longest duty freeze in over 20 years.
- In total the Treasury have eased the burden on motorists by £22.5 billion over the parliament to 2015-16.
- Average pump prices are currently 16 pence per litre lower than under the previous government's plans, and will be nearly 20 pence per litre lower by the end of parliament.
- Furthermore, it currently costs £9 less for a typical motorist to fill their tank, and will cost £10 less by the end of the Parliament.
- In total by 2015-16, a typical motorist will have saved £680, a small business with a van £1,300 and haulier £21,000 as a result of the action this Government has taken.
