Responding to the Autumn Statement announced by the Chancellor of the Exchequer – the Freight Transport Association (FTA) has said that the decision not to reduce fuel duty was a missed opportunity by the Government.
In its submission ahead of the 2015 Statement – FTA had called on Mr Osborne for a 3p per litre reduction in fuel duty to ease cost pressures on domestic road freight, stimulate growth and create jobs. However, within his announcement the Chancellor neglected to acknowledge the importance of the reduction.
In response to George Osborne’s announcement – Karen Dee, FTA’s Director of Policy, said:
“The lack of recognition of the importance of reducing fuel duty is a missed opportunity by the Government in the Autumn Statement today. The 3p per litre reduction would have provided much needed economic relief – not only to the logistics sector, which faces continuing difficult trading conditions, but also to the wider motoring public who rely on their cars to get to and from work.”
A study part-funded by FTA and published by the Centre for Economic and Business Research (CEBR) confirmed that low forecourt prices raised UK GDP by 0.6%, stimulated an extra £11.6 billion of economic activity, created 121,000 jobs and boosted government tax revenues in 2015.
FTA, which represents 15,000 members in the logistics sector, sent its submission to Mr Osborne earlier this month together with a letter from Chief Executive David Wells highlighting three key issues for the industry – skills shortage, fuel duty and infrastructure investment.