The government has submitted an application to the European Commission for 17 of the most rural areas in mainland UK to receive a fuel duty discount of up to 5 pence per litre.
Mr Alexander said: “High fuel prices in areas where cars are a necessity, not a luxury, is a major issue in rural communities across the UK. So, following a supplementary call for information I’m pleased to announce that seven new areas will join the ten areas already part of our new application.
“Reaching agreement with the Commission will not be easy, but we will now get on with making that case as strongly as we can.”
Pump Price Threshold: Pump prices have to be consistently more expensive than the lowest pump price on the islands in the existing scheme, during the months examined.
Cost of Transporting Fuel: Areas have to be over 100 miles by road from the nearest refinery.
Population Density: The population density must be no higher than any area in the current scheme. The highest population density of the islands in the current scheme is 135 people per km2.
New applications have been made for:
- NE48 (Hexham, Northumberland - England)
- IV54 (Strathcarron, Highland - Scotland)
- IV26 (Ullapool, Highland - Scotland)
- IV27 (Lairg, Highland – Scotland )
- PH41 (Mallaig, Highland - Scotland)
- KW12 (Hallkirk, Highland – Scotland)
- PA80 (Oban, Argyll and Bute – Scotland)
Areas identified last year were:
- LA17 (Kirkby-in-Furness, Cumbria - England)
- EX35 (Lynton and Lynmouth, Devon - England)
- Hawes (North Yorkshire - England)
- IV14 (Strathpeffer, Highland - Scotland)
- PH36 (Acharacle, Highland – Scotland)
- IV22 (Achnasheen, Highland - Scotland)
- PA38 (Appin, Argyll and Bute – Scotland)
- PH23 (Carrbridge, Highland - Scotland)
- PH19 (Dalwhinnie, Highland - Scotland)
- IV21 (Gairloch, Highland - Scotland)
In line with European Union law, the UK now needs to secure approval for the expanded scheme from the EC and an application has been submitted.A final decision on the areas and the price discount is expected from the EC later this year.
The government launched a call for information in July 2013 and received a number of submissions to inform the evidence it has submitted today. Given the strict nature of the EC criteria, towns that have not been shortlisted are extremely unlikely to receive approval from the EC.