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The Freight Transport Association has welcomed the Chancellor’s decision to cancel January’s 3p per litre fuel duty increase, but is disappointed that he did not go further and abandon all planned rises before the next election and move to reduce fuel duty by 3p a litre.
FTA has been at the heart of the FairFuelUK campaign to have the increase scrapped and lobbying will continue for a reduction in the current level.
James Hookham, FTA’s Managing Director – Policy & Communications said: “This early Christmas present from the Chancellor is a good start, but we will not let this issue go. Spiralling fuel costs have a devastating impact on haulage businesses, their customers and ultimately everyone through the price of goods on the shelves, and the campaign for a fairer deal will continue.
“January’s rise would have cost a 10 vehicle freight operator around £14,000 – which could be one employee’s wages. While we are relieved that the immediate danger has passed, in order to get the UK back on the road to economic recovery it is vital that we have a cut in fuel duty and a long-term strategy to prevent future rises and uncertainty.”
Research commissioned by FairFuel UK from the National Institute for Economic and Social Research (NIESR) has found that a 3 pence reduction in fuel duty could generate an additional 75 thousand jobs, grow the economy overall by 0.2% at a net cost to the Treasury of £3bn. It is FTA’s contention that taken together these increases in disposable income for consumers and free cash for businesses would be spent or invested elsewhere in the economy, leading to the re-ignition of economic growth.