HC Deb 08 February 1996 vol 271 c462
9. Mr. William O'Brien

To ask the Chancellor of the Exchequer what recent estimate he has made of revenues accruing from the increases in fuel tax in the next 12 months. [12644]

Mr. Heathcoat-Amory

The figures published at the time of the Budget show that the 5 per cent. increase in road fuel duties previously announced and confirmed in the Budget will raise £1,475 million in 1996–97, compared to a non-indexed base, and £850 million compared to an indexed base.

Mr. O'Brien

Is the Minister aware of the increase in bus fares and other travel charges as a direct result of the increase in fuel tax? Is he also aware that the people who suffer most from that are pensioners, widows and families on low incomes? Does he accept that the increase is a further hidden tax introduced by this Government, which only confirms that the Conservatives are the party of higher taxation?

Mr. Heathcoat-Amory

The transport industry generally must bear its share of any increase in road fuel duties, which were pre-announced by my right hon. and learned Friend the Chancellor. The hon. Gentleman will, however, know that the fuel rebate to the transport industry, and to the bus industry in particular, is still valuable. The help and subsidies given by local authorities mean that buses are still a subsidised form of transport.

Mr. Fabricant

Will my hon. Friend confirm that, if he travelled in Europe, he would find that petrol and diesel are considerably more expensive than they are in the United Kingdom?

Mr. Heathcoat-Amory

Yes, I can confirm that, despite the recent rise in petrol duty, we still have about the lowest excise duty rates on petrol of any European Union country.

Mrs. Fyfe

In view of the severe weather experienced in some parts of the country, now and in the recent past, the Treasury must have an unexpected gain from spending on domestic fuel—not so much a windfall gain as a snowfall gain. Can the Minister estimate how much the Treasury has gained from the necessity to spend more on domestic fuel?

Mr. Heathcoat-Amory

Cold weather payments are available and have been paid during periods of cold weather. The hon. Lady knows that help is given where it is most required.