Danny Alexander takes fuel duty battle to EU

Danny Alexander’s pledge to take the fight for cheaper fuel to Brussels next month tops off a triumphant Autumn Statement for the Government.

For the first time, the Coalition was able to announce positive economic figures last week. That allowed the Chancellor to confirm he will freeze fuel duty until the next General Election.

And speaking exclusively to The Sunday Post, the Chief Secretary to the Treasury, Danny Alexander, revealed he wants to extend the discount scheme already in place in island communities to more rural mainland areas than previously announced.

Thirty six areas, including most of Scotland outwith the Central Belt plus places like Northumberland and Cumbria were on the original list the Government put forward to be covered by a reduction worth 5p off a litre of fuel that has to be granted by the EU.

Explained Alexander: “It will be that list plus potentially a few more areas. I felt it was important to have as full a list as we could.”

The Chief Secretary takes his case to the EU in January and he’s upbeat about his chance of success.

He said: “We’re able to present a powerful and well-argued case because we have places on the mainland UK that have prices at the same level as the islands that are a long way from refineries, so there’s a real extra cost to get the fuel to these places and that’s the case I’ll be making.

“I’m a very strong believer in Britain’s place in the EU and I intend to use all my influence over there to be successful on this one.”

The freeze in fuel duty was one of the more eye-catching elements of an Autumn Statement that was upbeat yet still fairly reserved.

The message was that the economy has turned a corner but there remain hard yards ahead of the nation to get back on a truly sound financial footing. The economy is growing again and the forecast is for more jobs to be created.

But concerns have been raised that the economic vim is artificial and that the Government is fuelling a boom based on consumer borrowing and rising house prices. Exactly like the one that ended in disaster five years ago.

Said Alexander: “I think we’re a very long way indeed from a housing bubble.”

Earlier this year, Alexander was embarrassed when it was reported his dad had criticised the Coalition’s so-called Bedroom Tax on spare rooms in council houses.

The Chief Secretary reckons his father will be happier now. He said: “I’m sure Dad will be pleased by the fact in the Autumn Statement that the amount we set aside for discretionary payments will be increased this year and the next.”

As well as being George Osborne’s number two at the Treasury, Alexander is a leading figure in the fight to save the union of the United Kingdom.

He’s keen to point up the benefits to Scotland of Treasury policies emanating from London. For example, due to complex funding arrangements, the Scottish Government will receive around £300 million extra as a result of announcements in the Autumn Statement.

He suggested the Scottish Government could use the money to fund the free childcare pledge announced in the independence White Paper since they already have the powers to set that up.

Or he’d like to see a project with direct benefits for his Inverness constituency.

He said: “I would urge them to put a chunk of it towards speeding up the dualling of the A9 which is probably the most important infrastructure project in Scotland.

“Their main policy on this is installing average speed cameras the length of the A9. I’d like ‘average speed Alex’ to speed up the dualling of the A9.”

Alexander has been accused of funding plenty of projects in his own constituency or those of other Lib Dems, so-called pork barrel politics. In the past, money was found to support the sleeper train service he uses to get between his constituency and London and a tax break for ski lifts introduced. It’s an accusation hardly undone by the Autumn Statement announcement of £10 million for the Shetland Islands, seat of new Scottish Secretary and Lib Dem Alistair Carmichael, to fund infrastructure projects there.

Alexander said: “All the projects I’ve supported in Government are value for money.

“If my opponents want to attack me for doing too much for the Highlands and Islands I’m sure I’ll be able to throw that back at them.”