Page last updated at 12:47 GMT, Friday, 23 May 2008 13:47 UK

Fuel threat to education budget

Petrol pump
Fuel prices have been increasing

Rising food and fuel prices could threaten Highland Council's education budget, members have been warned.

A report to the council's education committee said transport costs, which had been budgeted to rise by 2%, could increase by more than 6%.

It estimated that heating costs would rise by a quarter, leading to increased costs of at least �700,000.

The report also estimated that rising food prices could add a further �500,000 to its expenses.

The report, presented to the council's education, culture and sport committee, said the increased budget pressures could have a detrimental impact on next year's education budget.

It said the increased cost of school transport was the biggest known risk from rising fuel prices. This could mean a further expense of up to �400,000, while increased heating bills could add another �371,000.

Planning committee chairman Drew Hendry said: "I would like to see the chancellor of the exchequer recognise that rural communities have special needs in terms of fuel.

'Fuel poverty'

"It is important that when you are talking roughly 80p - and the way things are going, probably �1 - a litre in tax, that you make some concessions to help those that are hardest hit by this kind of thing.

"If we have to restrict any educational function because we can't afford to pay the fuel bills then that is just clearly wrong, but the issue is about wider fuel poverty and people being disadvantaged in the Highlands."

Proposals to introduce a scheme modelled on the system used by several other European countries, which would see a lower rate of fuel duty for people in remote rural areas, will be voted on by parliament in June.


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific