News / Fuel duty increase scrapped
NORTHERN isles MP Alistair Carmichael has welcomed two elements of chancellor George Osborne’s autumn statement, which generally drew a bleak picture of the state of the economy and the UK’s public finances.
Speaking in the Commons on Wednesday, Mr Osborne announced that the 3p per litre fuel duty hike, due to come into force in January, was to be scrapped.
He also told the House that the personal income tax allowance will increase to £9,440 next year.
Mr Carmichael, the government’s deputy chief whip, said tough spending decisions had to be made in a way that was fair to everyone.
“Ministers are well aware of the difficulty that the high price of fuel has continued to cause for families around the country. In places like the northern isles where alternatives to the car are not always available, increases in fuel costs puts a real squeeze on household income and news that the duty rise has been scrapped is welcome.
“We should be under no illusions as to the size of the economic challenge that we still face. As the Chancellor made clear in his statement, there are no miracle cures here but there is much in this package that can be welcomed.
“At a time when everyone is being asked to tighten their belts, it is also wrong that large companies should be able to avoid paying their fair share in tax. Ministers have made clear that tackling tax avoidance is a real priority.
“For me, the key test of this autumn statement was whether we could make the tough spending decisions in a way that was fair. Ministers are targeting tax avoiders. They are cutting income tax for people on low and middle earnings. They are protecting benefits payments for the disabled and scrapping a fuel duty rise that would see families in the isles pay 3p more per litre for their fuel from January.
“Older people will see a cash increase in their state pension of £2.70 per week in 2013. The government has not ducked the difficult choices and has delivered for some of the most vulnerable people in our society.”
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