Cut fuel prices to kick start economy, says FairFuelUK

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Fuel price campaigners has renewed calls for a cut in fuel duty to stimulate economic growth following the decision by the Bank of England to cut its growth forecast for 2012 to almost zero.

FairFuelUK, which is backed by the Freight Transport Association and the Road Haulage Association, argued that cutting the price of fuel was one of the few levers left to government to stimulate growth.

Spokesman Quentin Willson said: “Growth is paralysed so it’s time the government looked at cutting fuel duty to stimulate activity. If we spend less on fuel tax we’ll spend more on other things. The Government acted wisely in abandoning the most recent series of planned rises in fuel duty.

“Our research shows that a cut of 2.5p per litre would boost growth by 0.33 per cent and, crucially would be revenue neutral for the government.

“The extra tax take on the resultant economic growth would compensate for any perceived loss in fuel duty revenue. Petrol and diesel are the oxygen of our economy. These times call for bold and decisive action.”

FairFuelUK is credited with stopping a series of fuel duty rises over the last 18 months which would have added a massive 9p per litre to the level of fuel duty.

Peter Carroll of FairFuelUK highlighted the fact that one bank has now come out in support of he fuel campaign.  Aldermore, which was founded three years ago specialises in lending to small and medium sized enterprises.

Damon Walford, managing director, Invoice Finance at Aldermore said:  “Our focus is on helping the SME industry in whichever form that takes, whether that’s lending to businesses or supporting a cause which directly affects them, we want to champion on behalf of the SME and I’m delighted Aldermore has joined FairFuelUK’s campaign.

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