Fair Fuel UK has renewed its call for the government to cut fuel duty to spur the struggling economy, after the Bank of England slashed its UK growth forecast for 2012 to close to zero.
Quentin Wilson, national spokesman for FairFuelUK, says: “Growth is paralysed so it's time the government looked at cutting fuel duty to stimulate activity. If we spend less on fuel tax, we'll spend more on other things.”
Wilson argues fuel duty is one of the last remaining levers the government can pull to help the UK economy recover from recession.
“Our most recent research showed that a cut of 2.5p per litre would boost growth by 0.33% and, crucially, would be revenue-neutral for the government. The extra tax take on the resultant economic growth would compensate for any perceived loss in fuel duty revenue.
“Petrol and diesel are the oxygen of our economy. These times call for bold and decisive action.”
In June, the chancellor delayed a rise in fuel duty until 2013.