Fuel price cut boosts drivers (and perhaps the Lib Dems)
DRIVERS in remote parts of Scotland will pay less for petrol and diesel after the UK Government struck a rebate deal with Brussels.
Residents of the Hebrides and the Northern Isles already get a 5p discount on their fuel as the cost of transporting it means prices are higher than on the mainland.
But Chief Secretary to the Treasury Danny Alexander yesterday announced that the scheme will be extended to 17 mainland areas at the end of May – including in his own Highland constituency – after the plan was signed off by the European Commission.
The decision sparked a furious row last night as Liberal Democrats were accused of using public money to garner votes – after it emerged more than 80 per cent of the areas to benefit will be in their seats. An analysis of the locations revealed that 14 of the 17 areas are in Lib Dem seats.
Labour called for an inquiry into ‘pork barrel politics’ by the Lib Dems, who have also boasted of channelling cash for roads and schools to their own seats.
Mr Alexander has faced repeated claims he is shoring up votes in his seat with increased spending there while imposing cutbacks elsewhere.
In the past, cash has been found for a tax break for ski lifts, a bail-out for a
‘It seems more than
a coincidence’
sleeper train from London to Scotland and green levies scrapped for a tourist train in the Cairngorms.
In January, Nick Clegg announced plans for a £300million ‘city deal’ for Inverness, including £2million to promote Loch Ness to tourists.
Shadow Treasury Chief Secretary Chris Leslie said: ‘While I’m sure there are many living in rural areas who would love a fuel duty cut, it seems more than a coincidence that this is largely restricted to Danny Alexander’s back yard and those of his small band of Lib Dem colleagues.
‘Taken together with the very convenient tax break for his local ski lift, there’s something very fishy about these decisions. Perhaps the public accounts c ommittee ought to investigate.’
Analysis of the areas to benefit from the new ‘rural fuel rebate’ shows nine are in the Ross, Skye and Lochaber constituency of former Lib Dem leader Charles Kennedy, who is facing a desperate fight with the SNP to hang on to his seat.
As well as the two in Mr Alexander’s seat, another two are in the Caithness, Sutherland and Easter Ross constituency of his Lib Dem neighbour John Thurso.
The other four areas are south of the Border.
Mr Alexander said the move will help up to 125,000 people in areas that are currently faced with some of the highest fuel prices in the country.
It is the first time the EU has approved a fuel discount for people living on the UK mainland.
Last night, a source close to Mr Alexander denied that the scheme was designed to favour Lib Dem politicians.
He said: ‘This is testament to how hard Danny has fought and campaigned on this issue over many years. Danny represents a rural community with many remote areas, so he knows firsthand the extra financial burden this puts on families and businesses facing high fuel costs, while relying on cars as a necessity to travel long distances.
‘The process was evidence- based and to maximise the UK’s chance of getting approval from the EU, the Treasury selected areas with characteristics as similar to the islands in the current scheme as possible.
‘Only the 17 areas with high prices due to objective factors such as remoteness and transport costs were put forward to the EU.’