Tuesday 22 November 2016

‘Fuel tax freeze should be fuel tax cut’

Campaigners against fuel taxes say the longest duty freeze in history should be turned into an actual reduction.

FairFuelUK say Philip Hammond, the Chancellor of the Exchequer, needs to accept that lower fuel prices are better for the economy and should do something about it in tomorrow's Autumn Statement.

The group use George Osborne’s continued tax freeze in 2016 boosting UK GDP by 0.57% as an example of how lower taxes can actually mean more revenue. It says the freeze generated 112,00 new jobs, put £5.3 billion back into the economy and bolstered tax revenues by 0.2%.

It says Mr Hammond must now go even further and actually reduce the taxes British citizens pay on fuel.

The group believes cutting duty by only 3p would add £850 million to GDP through motivating the economy, lowering inflation and increasing drivers' living standards.

The reduction is predicted to save the poorest half of UK households an average of £67 each, translating to £1.9 billion in total.

FairFuelUK says Britain is the fifth most fuel taxed country in the world, with drivers paying more than £33 billion a year with little infrastructure investment in return.

Quentin Willson, Lead Campaigner for FairFuelUK said: "Our CEBR Report proves again there’s no cost to the Government but huge benefits to businesses and families by cutting fuel duty. The Chancellor can’t ignore our evidence."