ONE WEEK TO SCRAP SEPTEMBER FUEL DUTY HIKE

RAISING FUEL PRICES WOULD HINDER ECONOMIC RECOVERY

SNP Westminster Transport spokesperson Angus MacNeil MP has called on the UK Government to scrap next week’s planned 2p increase on fuel prices - warning the hike could hinder economic recovery.

Mr MacNeil said:

"Pushing up fuel prices is absolutely the wrong thing to do in the grip of recession and this increase could actually hinder economic recovery.

"Just when the UK government should be stimulating the economy, the Treasury is intent on slapping another 2p on the price of petrol and diesel - hitting already hard-pressed households and businesses. The increase is especially damaging for the haulage industry.

"Currently, fuel duty accounts for about 71 pence of every pound the motorist spends at the forecourt.

"Increases in fuel duty are not a green tax, they are a Brown one, and people across Scotland have had their fill of Labour’s fuel duty increases. What Treasury Ministers in London forget is that for people in rural areas, a car is a necessity and not a luxury.”

(CLG) Average household council tax rise the lowest ever

The average rise in council tax per household next year will be the lowest ever, Local Government Minister John Healey announced today.

Figures published today show that the average Band D council tax increase will be three per cent. The average household council tax bill is almost £240 lower than the average Band D amount, and will increase by 2.6 per cent - the lowest such increase since council tax was introduced in 1993.

The first ever three year local government funding settlement giving councils an extra £8.9 billion, including 4.2 per cent more next year, is helping authorities to plan ahead and better manage the pressures their communities face. Planned efficiency savings over the settlement period are expected to reach £4.9billion.

The Government has been clear it expected an average council tax increase substantially below five per cent next year. The vast majority of local authorities have complied, with 23 councils, excluding their parish precepts, actually freezing or reducing council tax.

However, Mr Healey is also announcing today that Surrey and Derbyshire Police Authorities have set excessive increases that have been "designated" for capping action. They now have 21 days to make their case to government.

Derbyshire Police Authority has set its budget increase to 4.99% and its council tax to 8.68%. Last year Surrey Police Authority was capped and was set a notional budget for 2008/09, providing the basis for judging future increases. Based on those notional amounts, Surrey has set its budget increase to 4.82% and its council tax to 7.07%. This is the first time that the Government has had to take action twice against the same authority.

John Healey said:

"Most councils across the country are tightening their belts, which is exactly what the public wants to see. Today's figures show that the vast majority of local authorities have kept increases to a minimum.

"The average household council tax bill will rise by 2.6 per cent - the lowest increase since council tax was introduced in 1993.

"An extra £8.9 billion from the Government's three year funding settlement and £4.9 billion of planned efficiency savings are helping councils maintain both high quality public services and low council tax, and for the first time ever the public now see on their bill how efficient their council is.

"With a tough economic year ahead councils will need to do even more to control costs and I remain ready to be tough with capping powers to protect council taxpayers from excessive increases."