Mr Peacock's final point on the impact of VAT on fuel prices is entirely factual. Those of us who represent rural Scotland in particular are entirely familiar with the scale and burden of fuel costs. The overwhelming majority of the cost of a litre of fuel is related to taxation.
On the impact on households, the VAT increase is equivalent to approximately 1.7 per cent of the net income of the poorest 20 per cent of Scottish households. For the highest-income 20 per cent of households, the VAT increase is equivalent to approximately 1.2 per cent of net income. The statistics clearly demonstrate the impacts in that respect.