New jobs could be created by cutting fuel duty by 2.5 pence per litre without costing the Government any tax revenue, a new report has revealed.
The research, conducted by the Centre for Economics and Business Research, concluded that by cutting fuel duty, 180,000 new jobs could be created.
The report was based on figures from the Office of National Statistics and states that a cut in fuel duty would provide the economy a boost which would offset the reduction in raw fuel duty take.
These findings were presented by the Freight Transport Association (FTA) and other organisations to Treasury minister Chloe Smith. The figures were presented to support the Fair Fuel UK campaign.
FTA managing director James Hookoam said: "This report is proof positive that cutting fuel duty would be a 'win-win' for business and the Government.
"A cut in fuel duty of 2.5 pence per litre would save truck operators £300 million a year - a welcome respite from serious commercial pressure - but more than this, it would create 180,000 jobs in the first year in the UK and increase our gross domestic product by 0.3%."
Further fuel duty cuts of five pence per litre would generate an extra 30,000 jobs, but the Treasury would suffer losses of £1 billion. However, the FTA believes this could be balanced out.
Copyright Press Association 2012