Raising fuel duty will damage UK economy, warns FairFuelUK

Raising fuel duty will damage UK economy, warns FairFuelUK

The FairFuelUK (FFUK) campaign has published an open letter to the chancellor on behalf of its 1.1 million supporters imploring him not to increase fuel duty in Wednesday’s Emergency Budget.

The letter, supported by 33 MPs as well as campaign sponsors the RAC, FTA, RHA, APN and Microlise, states:

“Dear Mr Osborne, FairFuelUK and the undersigned MPs from all parties warn George Osborne that an inflation based fuel duty rise in the coming Emergency Budget or in future years will lower GDP, cost the UK £8 billion in reduced economic activity, raise inflation and sabotage one of the slowest economic recoveries this country has ever seen. 

“Even The Treasury has said that the government’s freeze on duty since 2011 has improved GDP by 0.5% and that ‘low fuel costs are good for the economy’.  The UK already has the highest duty regimes in the EU, 98% of FairFuelUK’s 1.1 million supporters believe this is too high and research by CEBR confirm that fuel duty is already at an unsustainable level.

“To ignore 37 million drivers, deny the fact we are reliant on a road economy and side-step haversacks of prestigious academic fiscal research will seem arrogant and reckless. 

“Before the election this government trumpeted its policy of keeping fuel costs low to stimulate growth and jobs. A volte-face now will appear duplicitous.”

The letter goes on to urge the chancellor to be fearless and to continue to protect the UK’s fragile road-based economy by at least freezing fuel duty in the lifetime of the parliament.

“However he must consider a real cut in this levy, the economist’s preferred choice and proven to spawn prolonged growth tax revenue for the exchequer,” it concludes.

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