§ 6. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what is his estimate of the cost to the Revenue in a full year of a reduction of 6d. and 1s., respectively, in the petrol tax.
§ Mr. HigginsThese reductions on all road fuel would cost about £120 million and £235, respectively.
§ Mr. Bruce-GardyneCould my hon. Friend say whether the Chancellor in framing his Budget proposals will bear in mind that in Scotland management has attributed a number of recent factory closures wholly and exclusively to the virtual doubling by the Labour Government of road taxation and its effect on road transport costs in areas like Scotland? In view of that, would he view sympathetically the fact that a reduction in this tax would be disproportionately to the advantage of Scotland?
§ Mr. HigginsI am aware that the previous Administration increased the rate of petrol tax from 2s. 9d. to 4s. 6d. a gallon, and my right hon. Friend will bear in mind the points made by my hon. Friend in the course of reviewing indirect taxation before the Budget.
Mr. Bob BrownWould the hon. Gentleman recommend to his right hon. Friend that he should reduce the rate of tax by a shilling in his Budget, in keeping with the false promise of the Prime Minister to deal with prices "at a stroke"?
§ Mr. HigginsAs I have said, my right hon. Friend will keep the whole of indirect taxation under review before the Budget.