FUEL DUTY ACTION NEEDED NOW

Attn: NEWSDESKS


POLITICAL / MOTORING/ ECONOMY CORRESPONDENTS


The First Minister today called on the Tory government to use some of the £1 billion of extra revenues from rising oil prices to introduce a fuel stabiliser now, when it is most needed and condemned the rising fuel and VAT costs facing families and businesses.


Alex Salmond also said he would approach the UK Government over the cost to the Scottish budget of meeting VAT and fuel duty rises. The VAT increase is costing the NHS alone an additional £26 million.



SNP MSP for Cunninghame North Kenneth Gibson raised the problems rising VAT and fuel duty are causing for families and businesses and the pressure on the Scottish budget with the First Minister during First Ministers Question in the Scottish Parliament.



In his answer the First Minister said



“The recent increase to vat and fuel duty into by the uk government will generate additional pressures for scottish business and families and indeed public services at a time when Scotland is already facing unprecedented cuts in public spending and when economic recovery is remains fragile”



He described the Prime Minister as “extraordinarily reluctant to introduce it [a Fuel stabiliser] just when the time is right for such an initiative.”


Cunninghame North MSP Kenneth Gibson said:



“The SNP has consistently argued for a fuel stabiliser to bring pricesdown and help businesses and families.



“Every penny of fuel tax and duty heading to the Treasury is a penny outof Scotland’s economy and Scotland’s budget and will add to costs of goodsacross the country.



“The SNP is doing what we can to keep costs down for families and businesses with a freeze in the council tax, reduced business rates and free prescription charges but the UK Government are refusing to act.



“Businesses cannot afford to be kept hanging on by the Tories. The UK Govennment should commit to scrapping the duty and introducing a stabiliser now.”



ENDS