Labour promises to force Commons vote on petrol prices
By Ian Dunt
Labour will force a Commons vote on fuel prices on Wednesday in a bid to convince the government to cancel the VAT rise on petrol.
The plans came in a press conference which saw Ed Miliband and Ed Balls counter claims that Labour has no policies by unveiling a decidedly populist economic package.
The pair called for a fresh bankers’ bonus tax and a cut in VAT on petrol as part of an agenda designed to boost economic performance.
The announcement – the first major policy presentation since Mr Balls took over from Alan Johnson as shadow chancellor – also saw demands for £1.2 billion investment in the construction industry in a bid to create 25,000 homes.
Analysis: Miliband’s ‘cost of living’ tactic pays off
Mr Balls, who said it cost him £74.50 at the weekend to fill up his car, argued that the VAT rise on fuel could be cancelled using money from a renewed bankers’ bonus, which raised £3.5 billion last year.
Labour will call for the VAT rise to be reversed in the case of petrol on Wednesday in the Commons. The party will pressure Conservative MPs to back its proposal.
Labour evidently believes there is real political capital to be gained by offering voters help with rising petrol prices – a phenomenon which has only worsened with unrest in the Middle East and north Africa.
The petrol issue also fits squarely with Mr Miliband’s emphasis on the cost of living “crisis” and reaches out to a lower-middle class demographic whose traditional loyalty is to the Conservatives.
“We can’t blame George Osborne for the rise in world oil prices, but the VAT rise was his decision,” Mr Balls said.
The opposition also want a £600 million fund for youth jobs to be established to combat youth unemployment and a £200 million boost to the regional growth fund.
“We are under no illusions that at this stage this government will abandon their deficit reduction plan-they are too dug in for that,” Mr Miliband said.
“But at least they should take some steps to deal with faltering growth in our economy.
“Together, our plans can create 110,000 jobs in our economy and it can be done by continuing Labour’s bonus tax on banks.”
The Labour leader said the economy should be growing strongly by this stage in the economic cycle and that unemployment should be coming down.
“If the growth forecast is down, then it’s clear the government are damaging the economy,” he added.
In a passage which tried to associate next week’s budget squarely with the prime minister, Mr Miliband argued that David Cameron’s claim that the UK was out of the danger zone now sounded very hollow.
The Conservatives accused Labour of economic irresponsibility and argued the party has made £12 billion of unfunded spending commitments in the last month.
Tory MP Matthew Hancock said: “Ed Balls is promising unfunded tax cuts with money he’s already spent. No wonder Labour couldn’t live within their means, and their message now is they would max out the nation’s credit card all over again.”
In a sign of the growing intensity of political debate ahead of May’s local elections, Tory activists took to the streets outside the press conference wearing masks of Mr Miliband and Mr Ball’s faces and Conservative HQ organised a counter-briefing for immediately after the Labour event.
