Saturday 1st Oct 2016 - Logistics Manager

FTA calls for revised approach to fuel duty

Freight Transport Association  has called on chancellor George Osborne to revise the governments approach to fuel duty to boost the economy.

In its pre-Budget submission, the FTA welcomed Osborne’s decision not to go ahead with any increases in fuel duties for the remainder of this Parliament, but said he should consider the economic benefits that could be delivered by further development of the Government’s approach to fuel duty.

Director of policy Karen Dee said: “Both the prime minister and the chancellor of the exchequer continue to emphasise that the government’s primary objective is to protect and build on the recent encouraging signs that growth is returning to the UK economy. FTA believes that a reduction in fuel duties (of 3 pence per litre), would make an important contribution to this objective.”

In its submission FTA referred to two studies which provide evidence for its case, and demonstrate that a cut in fuel duties could deliver significant benefits including jobs, boosting GDP, and, in some circumstances, deliver a net increase in tax revenue:

1. CEBR (Centre for Economics and Business Research)

2. NIESR (National Institute for Economic and Social Research)

In addition, FTA pressed Government for funding for vocational skills to help address the current driver shortage problem.