A study by the Centre for Economics and Business Research has revealed startling figures.
The study's initial findings, published this week, are that a 2.5p per litre reduction in fuel duty would result in no tax loss to the treasury, but would create 180,000 jobs and increase GDP by 0.33%. Furthermore, although an even more radical 5p cut in fuel duty would cost the Exchequer around £1 billion, the report claims this would likely be offset by increased consumer confidence, while creating another 30,000 jobs.
The report has been welcomed by the FairFuelUK campaign group, who presented the initial findings of the study today to the Treasury Minister Chloe Smith. The FairFuelUK group has some high-profile supporters, backed by the RAC, the Freight Transport Association, and the Road Haulage Association.
"We've been saying this all along and now we can prove it", said journalist and broadcaster Quentin Willson, spokesman for FairFuelUK, "This conclusively backs up our claim that a cut in fuel duty will boost the economy without harming Treasury revenues. The Government now needs to embrace these findings and follow through on the 1p cut they made last year. Cutting fuel duty will boost growth, create jobs, and reduce welfare bills."
"The industry, its customers, motorists and the economy as a whole cannot afford a further hike in what is already by far the highest duty rate in the EU", said Jack Semple of the Road Haulage Association, "Were the Chancellor to cut duty and scrap the 3.02 pence a litre increase planned for August, hauliers would be in a better position to invest in their businesses. The same would apply to hauliers' customers and the general public would be able to spend money in ways that would boost the economy."
FairFuelUK will be holding its inagural National FairFuel Day on Wednesday 7th May, the full details of which are available on http://bit.ly/NationalFairFuelDay.
