Freight body urges 3p fuel duty cut

Freight body urges 3p fuel duty cut

One of the UK's largest trade bodies has urged the Chancellor to slash fuel duty by 3 pence per litre next month.

The Freight Transport Association (FTA), in its pre-Budget presentation, wants George Osborne to go further than freezing the tax when he presents the 2014 Budget statement on March 19.

The FTA said: "By reducing road fuel duty it would ease cost pressure on domestic freight activity and stimulate economic growth."

A poll earlier this year showed the cost of motoring is drivers' biggest worry, with fuel, road tax and repairs among their outgoings.

James Hookham, FTA managing director of policy and communications, said lowering fuel duty by 3p per litre would provide a real boost to balancing the economy.

He added: "FTA's research shows he (Mr Osborne) would get his money back through higher tax receipts as trade improved and jobs increased."

The Chancellor had originally planned to raise fuel duty from September 1. This was forecast to be worth 1.61 pence per litre.

But Mr Osborne said in his Autumn Statement this had been scrapped, an announcement that was welcomed by the FTA.

RAC spokesman Simon Williams says: "The consistently high price of fuel hits businesses hard, but the duty levied on every litre bought at the pumps by the Government turns our fuel from being reasonably priced into some of the most expensive in Europe.

"Like the FTA, the RAC is also a supporter of the FairFuel UK campaign and is calling for forecourt receipts to clearly show the price of the fuel, the amount of duty charged and the VAT so every motorist can see what share the fuel companies get and what they are paying to the Government each time they fill their tanks."

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