As Gordon Brown faces the prospect of another revolt by Labour MPs over tax, SNP Westminster Treasury spokesperson, Stewart Hosie MP, has warned the Prime Minister faces a "summer of discontent" unless he u-turns on plans to increase road tax.

As protests get underway in England and Wales, Mr Hosie also confirmed that the SNP will bring an amendment, supported by the Road Haulage Association (RHA), to the Finance Bill for a Fuel Duty Regulator.

The proposal would mean that higher oil prices trigger lower fuel duties, which make up 60 per cent of the price of petrol and diesel.

Mr Hosie said:

"Gordon Brown faces a summer of discontent unless he abandons his unfair plans to increase road tax further.

"Just like the 10p tax fiasco the soaring cost of fuel and road tax is hitting hard working families and businesses hardest.

"After the thrashing Labour got in the recent elections, it’s no wonder their backbenchers are panicking.

"Perhaps these same Labour MPs now wish they had supported the SNP’s proposal for a Fuel Duty Regulator when we first proposed it in 2005, but they will have another chance soon.

"Our road fuel regulator will help keep fuel prices down. It would make automatic a decision on freezing duties that is currently left to the Chancellor's whim, and would help keep pump prices lower.

"Every time oil prices go up we pay through the nose. However the Treasury rakes in the loot not just from corporation tax but also from increased VAT on the rising price at the pumps.

"This proposal would see any extra cash raised from VAT on higher pump prices would go straight back into an equivalent cut in fuel duty, helping motorists living in remote rural communities and the hard pressed haulage industry."

SNP Westminster Transport spokesperson, Angus MacNeil MP, added:

"Just like the 10p tax fiasco, sooner or later Gordon Brown is going to have to u-turn.

"Gordon Brown says he feels people's pain over rising costs, but why doesn’t he prove it by taking action over fuel prices?

"People want action now, not more hand wringing from the Prime Minister.

"Ironically Scotland as one of world's largest oil producers is hit hardest as our haulage industry is most vulnerable to high pump prices."

In support of the Fuel Price Regulator amendment, Phil Flanders of the Road Haulage Association said:

"The Road Haulage Association supports the SNP's amendment to the finance bill for a "Fuel Price Regulator".

"This will bring some stability to a hard pressed haulage industry and its customers who, in many cases are resisting the constant increases that hauliers need to cover their costs.

"The Treasury, in recent weeks have emphasised the importance of stability and that argument is very relevant to the haulage industry's largest cost."

Note:

The Regulator would result in an automatic freeze on fuel duty increases if world oil prices rose above levels forecast by the Chancellor and a parallel reduction in duty to match the extra revenue from VAT from higher pump prices. The proposal is backed by the Road Haulage Association.