Lib Dems call for Government’s £2bn tax windfall to shield families from rising transport costs

People in Plymouth and across the country are struggling with the cost of living. That is being made worse by the US decision to attack Iran, which has led to massive disruption to energy supplies. Right now, there is no end in sight to that disruption.

With those prices rising as a result of the war, the Government will actually see an uptick in its income from VAT, estimated at £2 billion. The Liberal Democrats are calling for that extra money to be used to cut the cost of travel, set to rise because of disruption caused by the war. That will make it easier and cheaper for people to get to work and to go about their lives.

Plymouth Liberal Democrats back these calls, which would mean:

•⁠  ⁠A 12p per litre cut in fuel duty

•⁠  ⁠Capping bus fares at £1, instead of the current £3

•⁠  ⁠Cutting train fares by 10%

•⁠  ⁠And cutting VAT on public charging of electric vehicles.

Commenting, Jacqui Spencer, Lib Dem candidate for Moor View ward in the city council elections on 7 May said: “I regularly take the train, and fares can be eyewatering. Being where we are on a map can mean catching the train anywhere can cost an arm and a leg. A cut of 10% in fares, paid for with the extra VAT the Government is taking in, would be a great help.”

Richard Bray, Lib Dem council candidate for Compton, added: "A 12p per litre cut in fuel duty would help the bank balance, as would cuts to public transport fares. The British Government needs to use the extra money it'll get from VAT as prices rise to take some of the pressure off household budgets - and transport costs are often ones that people can't do much to avoid."

Regular local bus user and Lib Dem candidate for Peverell, Stuart Bonar, also welcomed the proposals: “Capping local bus fares at £1 would be amazing. I use Plymouth’s bus network to get around the city, like when I visit my mum in Pennycross. At the moment, that costs me £3 each way, since Labour increased the maximum fare by 50% last year.

“Plymouth Citybus say they carry 18 million passengers each year. Crunching the numbers suggests that the Lib Dem £1 bus fare cap would mean Plymothians getting to keep hold of something like £36 million of their own money over the course of a year!”

More information on the national Lib Dems’ emergency transport package can be found on the national Lib Dem website