RHA: We need a fuel duty cut, not just a postponement
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By Laura Hailstone
THE CHANCELLOR is expected to postpone the 3ppl January fuel duty rise when he makes his Autumn Statement next week, but the Road Haulage Association (RHA) insists the haulage industry needs a cut in duty.
“It’s looking positive that we will see the January duty rise frozen, which of course we welcome, but with profit margins not even topping 1% for many hauliers, a freeze will only buy a little more time,” said RHA head of media relations Kate Gibbs. “What we have to see is a duty cut.” An RHA commissioned report on behalf of FairFuelUK (FFUK) states that a 3ppl cut would result in the creation of 70,000 jobs and boost GDP by 0.2%.
FFUK presented the National Institute for Economic and Social Research (NIESR) report to senior Treasury officials last month. A copy has also been given to the Office of Budget Responsibility, which scrutinises the Treasury’s costing of budget measures.
FFUK founder Peter Carroll told CM he remains hopeful that the chancellor and his advisors realise what a “toxic tax” fuel duty has become. “We’re at a point where the idea of fuel duty going up has become a dangerous idea for any politician,” said Carroll. “We’re on the verge of getting the government’s mindset changed based on the NIESR report. It is now in politicians’ minds that a cut in duty would stimulate economic growth, so we’re encouraged; but we obviously can’t count our chickens before they’ve hatched.” The chancellor will announce his Autumn Statement to parliament at 12.30pm on Wednesday 5 December. Go to commercial motor.com for full coverage.
• See p 15 for more on fuel duty