A petition calling for a three pence per litre (3ppl) reduction in fuel duty in the Chancellor’s forthcoming Budget has been delivered to Downing Street by the FairFuelUK (FFUK) Campaign, of which FTA is a leading supporter.
According to Freight Transport Association figures it is estimated that each penny of fuel duty costs freight and logistics operators £116 million a year, and the 3ppl cut would save around £350 million a year to the industry.
In its pre-Budget submission to George Osborne, FTA said that in order to ease the cost pressure on domestic freight activity and to stimulate economic growth through consumer demand, road fuel duty should be reduced by 3ppl. Evidence has shown that the UK economy would benefit from such a reduction by generating at least 70,000 jobs, increasing GDP by 0.2% and helping lower inflation.* The increase in disposable income for consumers and free cash for businesses would be spent or invested elsewhere in the economy, leading to the re-ignition of economic growth.
Karen Dee, FTA’s Director of Policy, said:
"FTA believes that the Chancellor could give the economy a real boost by reducing fuel duty by 3p per litre in the Budget on 19 March, as well as easing the pressure on struggling businesses. Research has shown that the cut in fuel duty would make an enormous difference to the ‘pockets’ of freight operators, and that the Chancellor would get his money back through higher tax receipts from increased employment and improving trade."
Launched in 2011 the FTA backed FairFuelUK Campaign has been credited with stopping all fuel duty increases that were planned in this Parliament, and has helped save the freight industry over £4 billion.
Previously FTA has said it welcomed the move by government in ‘freezing’ fuel duty as it is a clear indication of recognising the impact it has on the freight industry, but the Association has said it is now time to do more.
* Source: National Institute for Economic and Social Research (NIESR) and CEBR.
Further information on the FairFuelUK Campaign can be found at http://www.fairfueluk.com/