Fleet News

Fuel duty action could hand economy £3.6 billion lifeline, says FTA

fuel pump prices

The Freight Transport Association (FTA) has called on the Chancellor to cut fuel duty by at least five pence per litre and scrap the increase planned for August.

In its pre-Budget submission to the Treasury, the leading trade body 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 ailing economy.

Following sustained and concerted lobbying by FTA and its partners in the Fair Fuel UK campaign, the last Budget saw two planned increases in fuel duty deferred and an unprecedented cut in fuel duty of 1ppl, a move which saved businesses some £500 million. However, despite this the price of diesel increased by 7ppl in 2011.

James Hookham, FTA's MD of Policy and Communications, said: "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.

“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."

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