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Finance Bill

We consider it important that a ranged forecast be made in order to allow the trigger mechanism for the fuel price regulator to kick in, so we thought it was important—we spoke to the Clerks about this when we drafted the new clause—that that was laid down in the new clause because it was referred to specifically by a subsequent clause. I hope that helps the hon. Lady. I must move on. The second element of the road tax regulator would ensure that freezes on fuel duty were not left to the Chancellor, but were triggered automatically. In his Budget this year the Chancellor announced an increase in fuel duty of 1.22p in September, equivalent by coincidence to the reduction that would have happened had the fuel tax regulator been in place. Although we are delighted that that has been frozen for the time being, it should not be at the whim of Government, but should be triggered automatically by high prices in the world oil market. Hon. Members will remember the saga from last year when the Treasury repeatedly deferred its proposed duty rise from the 2004 Budget. Motorists and hauliers were given no certainty. The decision to freeze or not to freeze seemed to be based on nothing more than the Chancellor’s moods, or perhaps his political sensitivity to too-high fuel price rises. The haulage industry would much prefer certainty and an automatic trigger to what has become known as the Chancellor’s choice. Under subsection (1D) of the new clause, if oil prices rose above the forecast levels by the Chancellor in his Budget report, there would be an automatic freeze in fuel duties. In today’s circumstances, that would put some £20 million a month back into the pockets of constituents and local businesses, including haulage businesses, but would not affect the forecast revenue for the Government, as it would kick in only after the forecast was breached upwards.