Pre-Autumn Statement releases and announcement rumours of a continuing freeze in fuel duty till April 2018 show that the Chancellor of the Exchequer is looking to lower prices at the petrol pumps to steady the economy, according to FairFuelUK.
However, following the Autumn Statement UK petrol drivers will remain the 5th most fuel taxed in the world with diesel drivers being punished more than all other countries in 1st position. UK drivers will still pay £33 billion in fuel taxes each year to the Treasury for little investment return into roads infrastructure.
In 2016 George Osborne’s continuing freeze in duty boosted GDP by 0.57 per cent, generated 112,00 new jobs and put £5.3 billion back into hard working Brits consumer spending. It also bolstered tax revenues by 0.2 per cent.
According to FairFuelUK research, a 3p cut in duty would add £850 million to GDP with no change in the net tax position due to the loss of duty, simply because the levy reduction will be compensated by the boost to income tax revenues.
The motivation to the economy, impact on lowering inflation and 37 million drivers’ cost of living would be considerable. This drop in fuel duty would save the poorest 50 per cent of households on average £67 or £1.9 billion in aggregate.
Dover MP Charlie Elphicke thinks that cutting fuel duty would be a huge boost for the hard-working classes of modern Britain.
Elphicke adds, ‘It would mean more jobs – and more money in the pockets of families and small businesses. This is a powerful case for the Chancellor that lower fuel duty will help turbocharge growth in Brexit Britain.’
Howard Cox, founder of the FairFuelUK campaign says, ‘Such a widely popular cut in duty and VAT will resonate profoundly with those families the Prime Minister addressed directly on the day she took office. Those families she said, that are: ‘just managing’, ‘working around the clock’, ‘doing their best’ and where ‘life can be a struggle.
‘It’s time for the Government to truly deliver on the PM’s laudable Pre-Autumn Statement intentions and help millions of hard working families, small businesses and the haulage industry to prosper. By doing so, the UK Economy will thrive after Brexit.’
Further reading on tax reforms
