VAT rise to 20% will cost Yorkshire and the Humber £53 million

This week, local MP Jon Trickett voted in the House of Commons to reverse the government’s VAT rise on petrol and diesel. But Labour’s motion calling for immediate relief for motorists was defeated by Conservative and Liberal Democrat MPs who joined forces to vote against it.

The coalition government’s decision to hike VAT on fuel up to 20 per cent in January has added huge financial strain for many people across Wakefield who are already facing tough times.

According to the AA fuel price reports the last quarter, the average price of a litre of unleaded petrol has increased by 6.6 pence over these 3 months in Yorkshire and the Humber.

The House of Commons Library has also released figures showing that the estimated regional impact of increasing VAT on petrol to 20% will cost Yorkshire and the Humber a massive £53 million.

This is clearly a massive burden on people in this area and adds to the many other financial pressures that are facing everyone as a result of the coalition government’s irresponsible economic policy.

The Labour Party says the VAT rise should be reversed immediately on petrol using the £800m extra the government is now getting from the bank levy,. This would be a quick, direct and clear way to help relieve the financial difficulties that many people across this area are facing.

Jon Trickett MP for Hemsworth said:

“I’ve been contacted by a large number of constituents who are deeply concerned about the impact the VAT rise will have on their families. I have consistently opposed the Conservative-led government’s VAT rise which has hit families in my Hemsworth constituency and helped to push up petrol prices to their current record levels.

“It’s time the Chancellor took immediate action on fuel prices to ease the pressure on families who are already facing a tough year and their incomes squeezed.

He should immediately reverse the VAT rise on fuel, which has added increasing financial pressure on hard-working people. The government is piling on pressure to people who should not be bearing the brunt of the irresponsible behaviour of the banks who created this global economic recession.

George Osborne should look again at the annual fuel duty rise due in April in the Budget later this month. The last Labour government regularly postponed planned duty increases when world oil prices were on the up – as they are now.”

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