In a crucial debate on the government’s economic plans and specifically on their plans to raise fuel duty Sefton Central’s Labour MP Bill Esterson said, "This Conservative led government’s plans will raise the cost of fuel by 8 or 9 pence per litre. This will be exceedingly damaging to families, to businesses and to commuters in Sefton.
The government should think again and support Labour's plans for growth by taxing bankers’ bonuses to invest in the jobs and growth we need. Before the election, The Prime Minister promised fuel tax would come down but the plans in the budget puts fuel tax up along with VAT. The Prime Minister and his Cabinet colleagues should think again and help families and business in these tough times by reversing the increases in fuel duty and VAT.
Also in response to today’s figures showing CPI inflation running at 4.5 per cent Bill said: “These figures are alarming. They show inflation is now running at more than double the target rate.
"Across the country millions of people on low and middle incomes are being squeezed from every direction by rising prices made worse by the Tory VAT rise. The squeeze has been compounded from last month by cuts to tax credits, cuts to childcare support and the child benefit freeze.
“And to make matters worse George Osborne’s decision to raise VAT at a time of rising world food and oil prices looks increasingly like an own goal as high inflation continues to threaten a rise in mortgage rates for homeowners.
“The Bank of England has been put in an impossible position by George Osborne. It has been left to do all the work to support a recovery that's been choked off by the Tory-led Government’s fiscal policy to cut deeper and faster than any other major economy in the world.”