FairFuelUK (FFUK) joined forces with fifty MPs yesterday to present an independent economic report to the Treasury, which argues that cutting fuel duty will boost the haulage industry and the wider economy.
The report comes ahead of the government’s Autumn Statement next week. It was handed into the Treasury along with a 15,000 strong signature petition calling for the creation of an independent watchdog, PumpWatch, to police fair pricing at the pumps.
FFUK commissioned The Centre for Economics and Business Research (CEBR) to look at the impact of a current fuel duty freeze and the benefits of a 3% cut in fuel duty in 2017.
It estimates that the 2011 fuel duty cut and subsequent freeze has resulted in current road fuel prices being 11% lower and 16% lower, if RPI plus 1ppl had been added.
CEBR estimates that this amounts to savings across all households of £3.4bn and £5.3bn respectively.
The report adds: “Businesses also benefit significantly from lower fuel duty. An increase in fuel duty has a significant impact on running costs for commercial vehicles.
"For example, we estimate that if fuel duty increases in line with the RPI next April, annual running costs for a 44-tonne truck would increase by £847. If duty increases by RPI + 1ppl, then running costs would increase by £1,318.”
If a further 3ppl fuel duty cut is introduced by the government it would bring even more economic benefits, the report argues. “These include a boost to the gross value added (GVA) contribution of industries to GDP of about £0.85bn and the creation of 8,000 jobs.”
Cuts to fuel duty could also offset the impact of rising fuel costs and imports in the face of a declining post-Brexit pound, according to the report.
“Government can potentially offset this inflationary squeeze on household finances and company profit margins through a cut in fuel duty,” it said.
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."
Dover MP Charlie Elphicke said: "This is a powerful case for the chancellor that lower fuel duty will help turbocharge growth in Brexit Britain."
