Pagan Osborn comment on fuel duty proposals

Colin Clark is a partner at Pagan Osborne and heads its agriculture and estates team. He is an accredited specialist in agricultural law. He comments on Government plans regarding fuel duty support in rural areas.

It is ironic that the Government, after increasing fuel duty and VAT, having taken away with one hand are looking at the possibility of giving something back with the other by a fuel discount for remote communities. There really should be consistency in policy matters such as this.

It is also likely that huge amounts of additional tax are being raised on fuel with no doubt only a very small amount being refunded by the discounts.

Farmers, landowners, their employees and those who work in the tourism and forestry sectors are badly affected by the fuel duty and VAT increases. Public transport is not a viable option for many in remote communities where having a car is essential.

The cost of goods in the shops, building materials and other commodities is much higher in remote areas. The economics of living and working in these areas is fragile and needs encouragement and careful nurturing.

It is not just the direct cost of fuel which affects remote rural communities. The cost of transporting goods to and from these areas will still increase as most of the hauliers will not qualify for the discounts.

It is essential people are given every encouragement to live and work in these areas and provide viable communities big enough to support schools, businesses and other services. The fuel duty discount has all the hall marks of an offer being made to provide a sticking plaster by the person who caused the injury in the first place. It does not address the underlying and urgent problems facing remote communities.