Lilian Greenwood MP

Labour Member of Parliament for Nottingham South


Ed Balls


Lilian Greenwood MP Nottingham South 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. 


Lilian Greenwood said:


“I’ve consistently opposed the Conservative-led government’s VAT rise which has hit families in Nottingham 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.


“I’m disappointed that Conservative and Lib Dem MPs have missed an opportunity to put right part of their mistake on the VAT rise. They have voted against using extra money from the bank levy to give some immediate relief to hard-pressed motorists in our city.”


“The independent House of Commons Library says the Treasury will get an estimated extra £52m from drivers in East Midlands from the Tory VAT rise. Extra funds raised from the bank levy should be used to give that money back to people here in Nottingham and across our region.


“I also think that in the Budget later this month George Osborne should look again at the annual fuel duty rise due in April. The last Labour government regularly postponed planned duty increases when world oil prices were on the up - as they are now.”


Shadow chancellor Ed Balls MP added:


“George Osborne should act now to help families across Nottingham who are feeling the impact of his VAT rise. He also needs to come up with a plan to get our stalled economy moving again and get more people into work making their contribution and paying taxes. That's the best way to get the deficit down and ease the pressure on families facing the squeeze.”

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