17th March 2011

Adrian Bailey last night voted in the House of Commons to reverse the government’s VAT rise on petrol and diesel.

But Labour’s motion calling for immediate relief for motorists was defeated by Conservative and Liberal Democrat MPs who joined forces to vote against it.

The hike in VAT to 20 per cent in January has added nearly 3p to the price of a litre of petrol – or £1.35 to the cost of filling up a 50 litre tank – but could be reversed using an extra £800m from the bank levy. 

Adrian Bailey MP said:

“I’ve consistently opposed the Conservative-led government’s VAT rise which has hit hard-pressed motorists here in West Bromwich West and helped to push up petrol prices to their current record levels. People understand why world oil prices around the world are going up, but the Chancellor George Osborne has made things worse by putting up VAT.

“The independent House of Commons Library says the Treasury will get an estimated extra £64m from drivers in the West Midlands from the Tory VAT rise. I’m disappointed that Conservative and Lib Dem MPs have missed an opportunity to put right part of their mistake on the VAT rise."