Sunday 11th Dec 2016 - Logistics Manager

FTA presses chancellor for fuel tax cut

The Freight Transport Association has called on chancellor George Osborne to freeze or cut fuel duty in his summer budget which is due on 8th July.

Chancellor of the Exchequer George Osborne

Chancellor of the Exchequer George Osborne

There have been reports that Osborne might increase fuel tax, despite past promises not to.

FairFuelUK is holding an event at the House of Commons on 1st July to lobby against tax increases, and FTA chief executive David Wells has written to Osborne asking him not to renege on his promise to hold current levels until September.

Osborne delivered a budget on 18th March, but that was a compromise with the liberal democrat coalition partners. Following the Tory election win, Osborne decided a second budget was needed to deliver policies that are more Conservative in nature.

Speculation has been mounting that Osborne will be looking for big savings to make a dent in the £1.5 trillion of government debt.

As well as fuel tax rises, it has been suggested that he will cut £12 billion from the welfare budget, with cuts to pension tax benefits and child tax credits.

Wells said: “The prime minister and the chancellor both continue to emphasise that the government’s primary objective is to protect the UK economy. We believe that reducing fuel duty would make a huge contribution to this objective and we urge him to announce a cut in his Budget.”

The association also wants the government to fund driver training to alleviate the driver shortage crisis in the freight industry and put more investment into roads.