Fuel duty cuts could 'kickstart the economy', say FTA

The Freight Transport Association has thrown its weight behind a potential fuel duty cut which it predicts could throw businesses a lifeline and breathe new life into the national economy. The FTA delivered its case to MPs in a presentation at Westminster, chaired by Robert Halfon MP, detailing how high road fuel prices and high fuel duty was affecting consumers and businesses on a daily basis. The campaign is part of a larger on-going FairFuelUK campaign, which is the nationally-recognised body fighting for lower petrol and diesel prices, and has already successfully influenced the thwarting of £5 billion of fuel duty being levied on businesses and consumers in 2011 and 2012. During the presentation, James Hookham, managing director for policy and communications at the FTA, gave powerful evidence to the listening MPs. His speech drew particular attention to the significant impact of the cost of fuel on running a logistics firm and the economic benefits of not going ahead with the proposed increase. Hookham outlined five areas the FTA believes the general public need to know about fuel duty and the reasons it should be cut:

• Petrol really costs about 60p per litre (excluding duty and VAT)
• Fuel duty is over half the total price that is paid at the time of purchase
• Fuel duty is a tax on work _ it's paid straight out of cash flow or household expenditure, not profits or savings
• Fuel duty is paid by everyone _ businesses and hard-working families
• A 3p per litre rise in fuel duty costs a 10 vehicle freight operator approximately £14,000 per annum _ that could be a person's wages.

Hookham added: "In the run-up to the Autumn Statement it is vital that every MP is aware of what's at stake from an increase in fuel duty from January. "The FTA has taken this opportunity today to brief MPs from across the House on the threats that the increase in fuel duty will create to businesses and consumers and which support our case that the Chancellor should not only postpone the increase in January he should in fact reduce fuel duty by 3p and kick-start the economy." Calling all business owners dependant on the efficiency and reliability of their fleets for a large proportion of revenue: How would the proposed Fuel Duty increase impact on the way you do business? Let us know, drop us a comment.