FTA calls for urgent fuel duty cut
In its pre-Budget submission to the Treasury, the Freight Transport Association (FTA) is calling on Chancellor George Osbourne to slash fuel duty by at least 5p/litre and scrap the planned increase due in August. It argues that such action could save consumers and businesses £3.6 billion and prove to be a vital shot in the arm for the UK’s decidedly lethargic economic recovery. Osbourne is due to make the 2012 Budget statement on 21 March.Following sustained and concerted lobbying by the FTA and its partners in the FairFuelUK campaign, the last Budget saw two planned increases in fuel duty deferred and a reduction in fuel duty of 1p/litre, a move which saved businesses around £500m. Despite this, however, the price of diesel increased by 7p/litre in 2011.
“Never mind quantitative easing, cutting the still-disproportionately high amount we spend on diesel which is, after all, a business essential, would be a simple and effective way to stimulate the economy,” said FTA managing director of policy and communications James Hookham. “The billions that industry and consumers will save over a year would be invested elsewhere in the economy, giving the impetus to growth that is so badly needed.“George Osborne gave industry a lifeline in the last budget, but with the economy still in the doldrums and a new round of duty rises looming, we are asking the Chancellor to extend this logic further for the sake of businesses, consumers and UK plc. It is clear that the economy still needs it.”









