The Freight Transport Association (FTA) is urging the Government to reduce fuel duty by 3 pence per litre.
In its pre-Budget submission to the Chancellor George Osborne, the FTA said that its objective remains to help to deliver a boost to the UK economy through a revised approach to fuel duty, and added that it wants to work with Government towards achieving this common goal.
FTA welcomed the Chancellor's decision not to go ahead with any increases in fuel duties for the remainder of this Parliament, but ahead of his 2015 Budget on March 18, has asked the Chancellor to maintain his commitment and consider the economic benefits that could be delivered by further development of the Government’s approach to fuel duty.
Karen Dee, FTA director of policy said: “The freeze on fuel duty has provided some much needed economic relief – not only to the logistics sector, which faces continuing difficult trading conditions, but also to the wider motoring public who rely on their cars to get to and from work.
"As the UK economy continues on its path to recovery, this move provides just the kind of stability needed to give businesses the confidence to invest in their futures, to the benefit of the wider economy, customers and their employees."
In its submission FTA referred to two studies which provide evidence for its case, and demonstrate that a cut in fuel duties could deliver significant benefits including jobs, boosting GDP, and, in some circumstances, deliver a net increase in tax revenue.
Dee added: “Both the Prime Minister and the Chancellor of the Exchequer continue to emphasise that the Government’s primary objective is to protect and build on the recent encouraging signs that growth is returning to the UK economy. FTA believes that a reduction in fuel duties (of 3 pence per litre), would make an important contribution to this objective.”
In addition, FTA pressed Government for funding for vocational skills to help address the current driver shortage problem.