FairFuelUK puts more pressure on government
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By Chris Druce FAIRFUELUK WAS driving home the economic case for a cut in fuel duty as CM went to press.
The campaign, headed by Peter Carroll, was due to present research conducted by the Centre for Economics and Business Research (CEBR) to economic secretary to the Treasury Chloe Smith.
“We’re trying to affect a sea change in thinking,” Carroll told CM before the meeting, in the week it was revealed bulk diesel prices had reached a record high of 116.33ppl, sailing past April 2011’s previous all-time high of 115.43ppl. It means that for a typical artic lorry, diesel now represents at least 35% of operating costs.
Although Chancellor George Osborne has suggested that a fuel duty cut is not on the cards in the Budget later this month, Carroll believes the new economic research combined with the existing anecdotal evidence around the beneits of cutting tax to stimulate growth will prove persuasive.
“The research shows an immediate 2ppl cut would create 180,000 jobs and provide a 0.33% GDP boost and wouldn’t cost a penny [due to the additional VAT, Corporation Tax and National Insurance take that would result],” he says.
CEBR’s research states a 5ppl cut would create 210,000 jobs, at a short-term cost to the Treasury of £1m in reduced tax take, something that would be more than made up for by the long-term beneits to the economy. Having scrapped a 1ppl increase in January, the Chancellor has a 3ppl increase pencilled in for August.
The campaign, whose oficial backers comprise the Freight Transport Association, the Road Haulage Association, the Fuelcard Company and the RAC, is planning a mass lobby of Parliament as part of National FairFuel Day on 7 March. To register your attendance go to: www.fairfueluk.com/nationalfairfuelday