Proof that fuel duty will benefit the economy
An independent study by the Centre for Economics and Business Research found that the economy would benefit by lowering fuel duty in turn creating jobs and healthier business. The downside being it would reduce the income for the Treasury, the research suggested.
The Freight Transport Association and various other FairFuelUK supporters met with Treasury Minister Chloe Smith Tuesday to hand over the report which claims cutting fuel duty by 2.5ppl would save freight operators £300 million per year. It also would create around 180,000 jobs in first year and increase the UK’s gross domestic product by 0.3%.
James Hookham (FTA’s MD of Policy and Communications) explained that if this were to double to 5ppl it would create another 30,000 jobs in the first year and the resulting £1bn loss to the Exchequer would be short term and promptly offset by the economy’s long term gain. “This evidence shows that the power to stimulate the economy, actually creating real growth and jobs, is well within the Chancellor’s gift,”
“The parlous state of the UK economy demands bold and decisive action, we now know that being bold with fuel duty cuts supports the Government’s objective of stimulating growth. We urge him to extend the logic he used in last year’s Budget and cut fuel tax to bind the economy.”
Quentin Willson, FairFuelUK spokesman, urged the Government to welcome the findings that prove fuel duty can be cut without harming Treasury revenue. “The report gives economic rigour to what our supporters have known for months,” he explained. “It is also fair and progressive as it will give most help to those on low incomes.”
The Centre for Economics and Business Research’s full report is due to be published later this week.