Archived press release

Fuel tax: Government must tackle climate change

12 September 2005

Friends of the Earth is urging the Chancellor to say that the Government is serious about delivering promises on climate change and therefore must refuse to give in to fuel protesters demands for cuts in fuel duty.

Friends of the Earth's Campaigns Director, Mike Childs, said:

"Global warming threatens the lives and livelihoods of millions of people across the planet. This is why the Government has promised to take urgent action on climate change. Motoring is cheaper today in real terms than it was when Labour came to power in 1997. Cutting fuel duty will send all the wrong signals about the Government's commitment to tackling climate change. Gordon Brown must make it clear that he is determined to deliver on the Government promise of significant cuts in UK emissions and that he won't cave in to fuel protests.

"The Government must also do more to encourage people to buy more fuel efficient vehicles. He should start by increasing road tax for gas guzzlers and cutting it for more fuel efficient vehicles in his next budget."

Despite recent rises in oil prices, the cost of motoring is still cheaper in real terms than it was in 1997 when Labour came to power, and also cheaper than it was 30 years ago [1].

Road transport is currently responsible for around 22 per cent of UK carbon dioxide emissions, and that level is expected to rise. Friends of the Earth is calling on the Government to:

• Do more to encourage people to buy greener cars by increasing road tax (Vehicle Excise Duty) on gas-guzzlers and cutting it for greener cars. Friends of the Earth revealed today that motorists can save hundreds of pounds in fuel costs by choosing more fuel efficient cars [2].

• Do more to encourage people to use their cars less and use alternatives instead. The real cost of rail and bus travel has risen in the past 30 years. This trend has continued under Labour.

• Investigate introducing council tax relief for poorer people living in rural areas who are dependant on cars.

• Encourage the development and use of bio-fuels. Fuel companies should be forced to ensure that at least 5.75 per cent of their fuel comes from bio-fuels by 2010.

Transport facts

• Traffic levels have risen under Labour, despite a promise by Deputy Prime Minister, John Prescott, to reduce them. Traffic levels are now over ten per cent higher than when Labour came to power in 1997.

• Sales of gas-guzzling vehicles, including 4x4s, have increased, while sales of more fuel efficient vehicles have fallen. According to the Society of Motor Manufacturers and Traders, sales of 4x4s rose by 14% in 2004 but sales of `superminis' fell by 3.9% [4]

Notes

[1] The latest Government figures, published earlier this year, revealed that motoring costs fell by six per cent in real terms since Labour came to power up to 2004. See Hansard: PQ by Norman Baker 24 February 2005

Government data for 2005 shows that motoring spending by the public has risen by just 1.1 per cent in the 12 months to July 2005, compared to a 2.9 per cent rise in overall spending on all items. The rise in the price of oil since the end of July has not enough to have made motoring costs more expensive either since 1975 or when Labour came to power.

[2] Green cars could save drivers more cash than fuel cuts

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Published by Friends of the Earth Trust