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Fuel duty led us into double-dip recession

Yesterday we heard the official news that the UK economy grew by just 0.2 percent in the first quarter of 2012, effectively putting Britain back into recession.

But this should come as no surprise to followers of this blog as this outcome was predicted even before the Chancellor’s budget came out (21 March) by national campaign group FairFuelUK, (who we also work with, alongside the Road Haulage Association (RHA), RAC and Freight Transport Association).

Working with FairFuelUK, the Centre for Economics and Business Research (CEBR) compiled a pre-budget report showing a modest cut in fuel duty of 2.5 pence per litre would actually create 175,000 new jobs and would, on its own, boost GDP by 0.33 percent.

Unfortunately, George Osborne ignored that advice.

Yesterday, RHA Chief Executive, Geoff Dunning, summed up the disappointment we all felt: “If the Government would heed our advice and address the issue of fuel duty once and for all, this is a situation that could almost certainly have been avoided.

“Users of petrol and diesel fuels are desperate to see a reduction in fuel duty. The price of a tank of fuel would reduce and the subsequent savings would be put back into the economy, giving trade the boost it so desperately needs.”

Perhaps most detrimental is that Government is continuing to ignore the advice of experts and still plans on raising fuel duty 3p a litre in August. Is this a case of Mr Osborne throwing good money after bad – our money – in a stubborn and frankly flawed way of escaping this recession?

Despite the disappointment the FairFuelUK campaign has endured by the hands of this blinkered Government, it is continuing the fight for cheaper prices at the forecourt to help our businesses, our families and communities and to help our economy. At least someone is looking after us!

To show your support and join the fight, sign up at www.fairfueluk.com.
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