Chancellor rejects pleas to cut fuel duty in remote areas
Darling’s comments on prices provoke anger
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CHANCELLOR Alistair Darling has sparked anger after rejecting pleas to reduce fuel duty in remote parts of the Highlands and islands.
His claim that having different duty rates in different areas would create “perverse incentives” for motorists to drive further to fill up on cheap petrol and diesel was dismissed as “nonsense” by campaigners last night.
There was also a warning that communities could “wither on the vine” if the cost of domestic fuel is not reduced in areas such as the Western Isles, which has no gas and where nearly half of the population is designated as being in fuel poverty.
More than 6,000 people, almost a quarter of the Western Isles population, signed a petition protesting at the sky-high price of fuel on the islands. It called on the Scottish Government to put pressure on Westminster to introduce measures similar to those in France where fuel duty is reduced in remote areas.
Mr Darling wrote to Scottish Finance Secretary John Swinney stating that drawing up boundaries for any fuel rebate area would be extremely complicated and no administrative boundaries that exist would be suitable.
He said that fuel prices are not consistent across the Highlands and islands and price patterns are not straightforward or static. This would mean that rebate levels would have to be varied significantly across the region, making it very complicated to administer.
Mr Darling adds that if drivers drove around to benefit from low-duty fuel it would distort the market and increase C0 emissions.
“Taking these points into account, the government has decided we will not be taking further proposals for a fuel duty rebate for the Scottish Highlands and islands,” he said.
The letter is a shock to campaigners as last year, the chancellor, who has a family home on Greater Bernera, had signalled possible changes after being shocked when he filled up his car in the islands.
Western Isles SNP MSP Alasdair Allan said: “There seems to be a fundamental misunderstanding on the chancellor’s part. He seems to be under the impression that if you adjust the tax system to bring down the tax on fuel in our remote island communities that people in Glasgow and Edinburgh will travel to Islay and Shetland to fill up.”
He said no one wants fuel to be cheaper than other areas, they just want it to be less expensive than at present.
Highland SNP MSP Dave Thompson said the Western Isles was a perfect example of an area with a clear administrative boundary. He said: “I don’t think anyone would consider putting their car on the ferry at Ullapool to take advantage of 5p to 10p cheaper fuel duty – it is an absolute nonsense.
“So if they wanted to pilot a scheme to see how it would work the Western Isles would be the ideal place to try it out. It would be easy to do and define and would not cost the Treasury much because the population is very small in UK terms.”
Central Scotland SNP MSP John Wilson called for the Western Isles petition to be forwarded to the environment committee’s inquiry on fuel poverty.
He said: “If we don’t see some action taken we could see these communities wither on the vine.”
