Plaid MPs call for rural fuel duty relief to be extended to Wales

Mark Mansfield

Plaid Cymru MPs have urged the Chancellor to extend rural fuel duty relief to Wales, warning that rising diesel prices are putting households and businesses under growing pressure.

Liz Saville Roberts, Ben Lake, Ann Davies and Llinos Medi have written jointly to the Chancellor after the average UK diesel price recently reached £2 a litre.

The Rural Fuel Duty Relief Scheme currently covers 21 remote areas in England and Scotland, but none in Wales.

The MPs want it extended to eligible Welsh communities, alongside retaining the temporary 5p fuel duty cut beyond December and considering a higher level of relief.

In their letter, they said: “Rural households across Wales often have no alternative mode of transport to travel to work, access education or attend essential healthcare appointments, and are therefore paying a premium simply because of where they live.”

Citing RAC estimates, the MPs said filling an average family car with diesel now costs almost £110 — £31 more than at the beginning of the US-Iran war.

They added: “Rural businesses have also explained how the increase in fuel prices risks crippling their operations.”

Business costs

Gwynedd-based food distributor Harlech Foodservice says its fuel costs have increased by 50% since March and are projected to reach £1.5 million a year.

Joint chairman Andrew Foskett said: “Diesel is the lifeblood of our industry and increases like this can only be absorbed for so long before they have to be passed on to customers.

“Due to increased transportation costs for manufacturers, along with poor harvests, fertiliser and labour costs, food inflation is likely to increase over the next 12 to 18 months.”

Research

The call comes as research by the Resolution Foundation suggests five years of rising prices have left the average UK household £2,900 worse off than it would have been had inflation remained at normal levels.

The think tank said the UK had experienced the equivalent of 13 years of normal inflation in just five, following the pandemic and wars in Ukraine and the Middle East.

Its study found that 1.7 million more households reported being unable to keep their homes warm enough in 2022/23 than in the previous year.

The proportion of poorer households falling behind on essential bills, including energy, water, council tax and rent, has almost doubled since 2020, reaching 18% in March this year.

James Smith, the Resolution Foundation’s chief economist, said: “Any new help must be squarely targeted at the poorer families facing the greatest hardship – starting with their energy bills.”

Chancellor John Healey faces pressure to provide further support in his first Budget, although higher borrowing costs have added to the squeeze on public finances.

Responding to the wider cost-of-living findings, a Treasury spokesperson said: “We know families are feeling the impact of higher prices, pushed up by conflicts overseas.

“The Chancellor is focused on giving households and businesses a bit of breathing space where we can.”

The Treasury pointed to measures including the removal of VAT from electricity bills and the extension of the temporary 5p fuel duty cut.

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