European Commission Approves Fuel Tax Cut

Some of the UK’s most remote communities are a step closer to getting up to a 5p per litre fuel price cut after the government’s Rural Fuel Rebate scheme cleared the major hurdle of European Commission (EC) approval today, Highland MP and Chief Secretary to the Treasury Danny Alexander has announced. The scheme will allow 125,000 people living the selected areas, who currently face some of the highest fuel prices in the country despite depending on cars for transport, to benefit from cheaper fuel. The UK’s most rural islands already receive this discount, but it will be the first time the Commission has approved a fuel discount on the mainland UK. Commission approval means that the issue is now awaiting agreement from other Member States through the Council of the European Union. With a view to implementing the scheme in the current Parliament, the government is pressing ahead with a formal consultation on the regulations necessary to implement the change today. Highland MP Danny Alexander said: "This is great news for motorists in these areas and brings a duty discount a step closer. "Even though fuel prices are falling across the country, they are still higher in very rural areas. "As someone who comes from one of the most rural areas in the UK, I know that for people who live in these areas cars are a necessity, not a luxury. "I’ve fought hard to reach this major milestone. "While we have one more stage to go, I want to make sure we are ready to implement this as a top priority so we will press for this to be heard as soon as possible and are today publishing the necessary draft regulations. "I’m determined to implement the Rural Fuel Rebate in the current Parliament as part of this government’s drive for a stronger economy and fairer society." Postcode areas included in the Government’s application the European Commission are: IV54, IV26, IV27, PH41, KW12, PH36, IV22, PH23, PH19, IV21, and IV14. Retailers of road fuel within these geographical areas will be eligible to register with HMRC and to claim back up to 5 pence per litre duty relief on purchases of unleaded petrol and diesel for retail sale within the eligible areas. They will be entitled to claim the relief from HMRC on a monthly basis.