Fuel tax cut would boost economy

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Fair Fuel UK has stepped up its campaign for a cut in tax on fuel citing research which it says shows that a reduction would boost the economy.

The initial findings of the report suggests that a cut of 2.5 per cent would boost GDP by 0.33 per cent creating 180,000 jobs with no loss in the government’s tax take. by The study by the Centre for Economics and Business Research is based on Office of National Statistics modelling.

The findings were presented to Treasury minister Chloe Smith this afternoon by the Fair Fuel UK Campaign whose members include the Freight Transport Association and the Road Haulage Association.

“This report is proof positive that cutting fuel duty would be a ‘win win’ for business and the Government,” said James Hookham, the FTA’s managing director of policy and communications.

“A cut in fuel duty of 2.5 pence per litre would save truck operators £300 million a year – a welcome respite from serious commercial pressure – but more than this, it would create 180,000 jobs in the first year in the UK and increase our gross domestic product by 0.3 per cent.”

The Fair Fuel Campaign has designated 7th March as Fair Fuel Day and is organising a mass lobby of parliament to persuade the government to cut fuel duty.

Fuel duty in the UK is currently 57.95p per litre – about 18p more than in Germany and 21p more than in France.

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