The campaign group FairFuelUK has welcomed the initial findings of a major report to be published this week by the Centre for Economics and Business Research which shows that a fuel duty cut of 2.5p per litre would create 180,000 jobs in the first year at no net tax loss. In addition, it would boost GDP by 0.33%.
An even bolder 5p cut would cost the Exchequer around £1 Billion, a figure likely to be offset by intangible benefits of increased confidence, and would create another 30,000 jobs.
The group presented these initial findings to Treasury Minister Chloe Smith today, 28 February.
National spokesman for FairFuelUK, Quentin Willson said, “We’ve been saying this all along and now we can prove it. This conclusively backs up our claim that a cut in fuel duty will boost the economy without harming Treasury revenues. Quite rightly, the Chancellor’s priority is on stimulating growth in order to pay down the deficit. Here is a way to do both.
“The Government now needs to embrace these findings and follow through on the 1p cut they made last year. The report gives economic rigour to what our supporters have known for months. Cutting fuel duty will boost growth, create jobs, and reduce welfare bills. It is also fair and progressive as it will give most help to those on low incomes.
RHA Director of Policy, Jack Semple commented: “Last week, the RHA’s weekly survey of diesel prices showed an historic all-time high. The industry, its customers, motorists and the economy as a whole cannot afford a further hike in what is already by far the highest duty rate in the EU.
“Were the Chancellor to cut duty and scrap the 3.02 pence a litre increase planned for August, hauliers would be in a better position to invest in their businesses. The same would apply to hauliers’ customers and to the general public would be able to spend money in ways that would boost the economy”.
The FairFuelUK campaign is backed by the RAC, the Freight Transport Association (FTA), the Road Haulage Association (RHA) and the Fuelcard Company together with over 200,000 members the public and over 150 Parliamentarians.
FairFuelUK is coordinating a mass lobby of politicians for their supporters to challenge their local MP for a cut in fuel duty on the inaugural National FairFuel Day. The mass lobby 2 weeks prior to the Budget will start at 1pm on Wednesday 7 March 2012 in Old Palace Yard, opposite the Houses of Parliament