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Number 10 backs scrapping August fuel duty rise

Well, we knew this was a contentious issue, but we never expected Number 10 and Number 11 to be facing off against one another over the proposed increase to fuel duty in August.

Our friends FairFuelUK have been tirelessly campaigning against the increase and so far they’ve won the support of 50 MPs who have signed their petition. And now the Prime Minister is agreeing the duty increase should be scrapped too. Welcome to the side of common sense, Mr Cameron!

But the Treasury is adamant it needs to go ahead. Chief Secretary to the Treasury, Danny Alexander, says it can’t afford the loss of £1.5 billion to the public finances the rise would generate.

But, let’s have a look at the maths…

The Centre for Economics and Business Research, Cebr, found that a 2.5 pence reduction in fuel duty would create 175 thousand jobs within one year. Plus, this reduction would not result in any fiscal loss to the Government, while GDP would receive a boost of 0.32 percent within a year.

This is because fuel is such an integral part of every financial transaction and those transactions are made more expensive every time the pump price goes up. CEO of Asda, Andy Clarke, is a man who understands business, and he is the latest to side with FairFuelUK on this issue. Scrapping the increase would act as a stimulus to spending at a time when customers are worried that they will not be able to pay for the goods in their shopping baskets

Another advocate is RHA Chief Executive, Geoff Dunning, who says: “Fuel is the one commodity on which the entire population of the UK is, to some extent, dependent. While we see prices fluctuating on an almost daily basis; it is the high level of fuel duty that has proved to be the thorn in the side of the economy.

“We already pay the highest level of fuel duty in Europe and, at a time when for many households, literally every penny counts, any increase at this time is unthinkable.”

I think Chancellor George Osborne, and the rest of the treasury, needs to listen to what everyone else, including the prime minister, is telling him. Fuel duty is holding back our economy and the increase has got to go!

 

Author: Anthony Hobbs

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