Chancellor’s unexpected fuel duty u-turn had been asked for by isles fuel campaigners

FAIR FUEL SOLUTIONS CAMPAIGN

5 December 2012

FFS welcomes Chancellor’s u-turn on 3p fuel duty hike

The Fair Fuel Solutions campaign in the Scottish islands today (Wed) welcomed Chancellor George Osborne’s U-turn on fuel duty. The chancellor responded to a sustained lobbying campaign by FFS, other fuel campaign groups and MPs from all sides to ditch his proposed tax hike of more than 3p per litre.

FFS spokesman Callum Ian Macmillan said: “We are glad that the Chancellor has responded to the submissions from FFS and other fuel groups on this issue.

“We now trust that the government will instruct its competition authorities to take the appropriate action following the latest OFT enquiry into profiteering in the fuel chain to our islands by implementing adequate safeguards to ensure that the reductions in fuel prices which our campaign has achieved are retained and that the government also impose appropriate penalties on those who have held our islands to ransom for too long.”

In a separate development FFS has urged islanders to support the revamped Outer Hebrides Commerce group in its fight with the Scottish Government to retain Road Equivalent Tariff (RET) relief on ferry prices and urged islanders to stand together for fair ferry prices by lobbying their elected representatives.

END

Letter to Chancellor attached

FAIR FUEL SOLUTIONS

15 November 2012

Rt Hon George Osborne MP
Chancellor of the Exchequer
HM Treasury
Horse Guards Road
London SW1A 2HQ

Dear Chancellor of the Exchequer

AUTUMN STATEMENT – FUEL

I write on behalf of the Fair Fuel Solutions campaign in the Scottish Islands. We are a community group set up with the sole aim of achieving fair fuel solutions for islanders.

Our initial focus has been on profiteering in the supply chain and our campaign has led to an Office of Fair Trading survey and to recent substantial cuts in pump prices as a result of pressure brought on by Fair Fuel Solutions, a brave fuel retailer who parted company with the dominant distributor and the many local people who have supported the campaign.

While our campaign has been successful, albeit in the short-term as we have yet to see whether the OFT will provide adequate safeguards for the future, the gains we have made will be partially negated by your government’s proposed fuel duty increase scheduled for January 1.

We note from the press comments by Conservative backbenchers that you are reconsidering this increase. We would urge you to listen to their representations, and those from many other parties, because we simply cannot afford it. At a time when inflation is forecast by the Bank of England to continue to increase and disposable income is already under severe pressure the people of our islands could not cope with a further increase without cutting back on what is a necessity in remote island communities i.e. fuel.

Any increase at this time would be punitive for the poorest in the country as we have among the lowest average incomes in the country and also the highest levels of fuel poverty. The impact on islanders would be disproportionately serious.

On this basis and the fact that a tax increase will probably not generate any more in income to the Treasury, due to the inevitable consequent reduction in car use, the Fair Fuel Solutions campaign strongly urges you not to proceed with the duty increase in January on the basis of fairness to all citizens. Only by not implementing the increase can you ensure that the weakest in the country are not punished in a disproportionate manner for using a resource that is an absolute necessity, particularly in remoter communities such as ours.

Yours faithfully

Callum Ian Macmillan