Press release

Fuel duty cuts are a temporary sticking plaster

23 March 2011

Commenting on the announcement by Chancellor George Osborne in the Budget today that fuel duty is to be cut, the planned 1p increase in fuel duty will be scrapped and the Government will introduce a fuel duty stabiliser to minimise the impact of rising oil prices, Friends of the Earth's transport campaigner Richard Dyer said:

"Short-term measures to tackle rocketing fuel prices are merely a sticking plaster - it's our economy's long-term fossil fuel dependency that urgently needs treatment.

"In the face of a global oil crisis this Budget will increase the UK's oil addiction - and people across the UK will be forced to pay the price.

"If we want to protect people from future price hikes we need a fresh approach based on smarter cars that use less fuel,  better public transport and more walking and cycling for shorter journeys.

"Tax cuts won't hold back the tide of rising oil prices - it's time to wave goodbye to fossil fuels."

Commenting on the announcement in the Budget that a rise in Air Passenger Duty will be delayed until next year, Richard Dyer added:

"The freeze on Air Passenger Duty is very disappointing - aviation is a major contributor to climate change but it gets off lightly by not paying fuel tax or VAT.

"The Coalition has also broken its pledge to introduce a per-plane tax - this would have discouraged airlines from flying planes half full and made air freight pay its way."

ENDS

Notes to editors: 

1. Friends of the Earth is calling on the Government to introduce a range of measures to green our transport system including:

• Cutting the roads budget - four thousand million pounds of road schemes are still in the pipeline and should be scrapped to fund greener initiatives that create more jobs
• Encouraging people to walk and cycle on shorter journeys - doubling the Local Sustainable Transport Fund to £1bn would help councils encourage more people to use their cars less
• Improving public transport in the countryside - reversing the cuts to bus funding announced in the Comprehensive Spending Review
• Improving public transport in cities - making our cities greener by restoring funding to public transport schemes facing the axe such as the Leeds trolley bus, Manchester rail improvements and Bristol's rapid bus service
• Providing tax relief to businesses to promote eco-driving training programmes - these can cut fuel consumption and increase car-sharing and public transport use

2. A Friends of the Earth briefing on fuel prices, transport and climate change is available for download.
3. Between 1997 and 2010 the over all cost of motoring, including the purchase of a vehicle, fell by seven per cent while bus and coach fares increased by 24 per cent and rail fares increased by 17 per cent. See our website for more information. 
4. According to the Conservative Party's consultation document from 2008, a fuel price stabiliser will reduce the shock of oil price spikes but it will still allow prices at the pumps to rise. A report by The Green Alliance says a stabiliser could knock a huge hole in public finances.
5. A per-plane tax was promised in the Coalition Agreement but the Government appears to be backtracking - the Chancellor stated that the per-plane tax will be abandoned for the foreseeable future because of international rules. 
6. Friends of the Earth's full briefing written ahead of today's Budget is available for download.
   NB: contains mistake on rise in bus fares. Corrected as follows: In the last 30 years cost of motoring has fallen (10%) while bus and coach has risen (54%)"

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Published by Friends of the Earth Trust