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Dr Neil Hudson
Member of Parliament for Epping Forest

Dr Neil Hudson MP calls for Treasury to address disproportionate rural energy costs in Spring Budget

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Tuesday, 5 March, 2024
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Dr Neil Hudson MP has joined a host of rural Conservative MPs in writing to the Chancellor ahead of the Spring Budget to take proactive action in the Spring Budget and redress the disproportionately high energy costs being levied on rural communities.

Led by George Freeman MP, the letter asked the Chancellor to consider a Fair Fuel Premium Tax Cut for rural postcodes which would take the pressure of businesses and households in the countryside which have been disproportionately exposed to energy price increases caused by Russia's war in Ukraine. 

This exposure stems from a range of issues including the 'old and cold' housing stock where colder weather and less energy efficient buildings combine to make colder homes, the higher reliance on heating fuel with properties off the gas grid, rural dependence on cars and rural wages which are on average 7.5% lower than in cities. 

In effect, rural homes, businesses and services are then paying more for energy that their urban equivalents - tipping some low income households into fuel poverty and therefore impacting state coffers via benefits, additional public services and council staffing resources.

The letter outlines recent Government data showing the impact of fuel costs on low income rural households is around 150% higher than those in urban areas, essentially creating a 'Rural Energy Tax' which was exacerbated by price spikes impacted by the war in Ukraine. 

Dr Hudson has been at the forefront of Parliament's work, shining a light on the disproportionate number of homes not connected to the gas grid in rural Britain. Already Government has taken note of Dr Hudson's campaigning by putting forward tailored support in the Energy Bills Support Scheme Alternative Fund, set aside millions to upgrade homes in Dr Hudson's constituency and boosted energy security through legislating for annual oil and gas licensing. 

But Dr Hudson is again calling for more support as the Conservatives once again show that only they can be trusted to deliver for the nation's countryside communities. 

 

Dr Neil Hudson MP said:

"Having heard directly from my constituents about the anxiety they can feel when their heating bill comes or they go to fill up their car, I am passionate we see further action to support our countryside communities in the Spring Budget.

"The Government has already done much to shield people from energy price spikes caused by Russia's invasion, but with rural communities most reliant on fuel for heating and travel so I hope we can target support in countryside communities to unlock our economic and social potential."

Attachments

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Treasury Letter (575.2 KB) 575.2 KB

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