2011 Budget: Lower fuel and water bills for Cornwall

I welcome George Osborne’s 2011 budget, and the relief it will bring to hard pressed families across Cornwall.

In recent years petrol has become a huge expense for people living in Truro and Falmouth. High petrol costs put pressure on the finances of people across the UK, a pressure that is even more pronounced in rural areas like Cornwall.

Since my election I have been lobbying Minsters to recognise the effect of rising petrol prices upon the lives of my constituents. I was therefore delighted by George Osborne’s announcements on fuel in Wednesday’s budget.

Labour’s fuel price escalator, which would have added almost another 5 pence to the price of a litre of petrol from April 2011, has been abolished. The Government has also delayed any duty increase. It has, in fact, brought down the main duty rate by 1 pence with immediate effect and introduced a fair fuel stabiliser.

As part of the fair fuel stabiliser, fuel duty will increase by inflation in years when oil prices are high. In years when the oil price falls below a set level on a sustained basis, however, the Government will increase fuel duty by RPI plus 1 penny per litre.

Another drain on the finances of Cornish families has also been tackled in the budget, the high rates charged by South West Water.

The Budget recognises that the South West is a region burdened with high water bills, and pledges dedicated Government funding to bring the cost of water down for local residents. 

A possible way in which that special funding might be organised is shortly to be released a consultation document- allowing the people of Cornwall to have their say. I will keep constituents closely up to date as to developments in this important matter.

Thanks to the measures outlined in the budget, the following years look set to see hard working Cornish families enjoying the benefits of lower fuel and water bills. After years of Labour neglecting the economic needs of rural areas like Cornwall, such benefits are well deserved.