Freezing fuel duty could boost economy

Freezing Fuel Duty could Boost Economy
In its pre-Budget submission to the Chancellor, the Freight Transport Association (FTA) has told George Osborne that a reduction in fuel duty would make an important contribution towards protecting the UK economy.

Research

Writing to Mr Osborne ahead of the Budget on 17 March, the FTA outlined the results of independent research which showed that a cut in duties would deliver significant economic benefits, and suggests that freezing fuel duty would boost household spending power by over £5bn.

Karen Dee – FTA Director of Policy said: “ The FTA has welcomed the Government decision not to go ahead with any increases on fuel duty in the last Parliament, which has provided much-needed economic relief – not only to the logistics sector, which faces continuing difficult trading conditions, but also to the wider motoring public who rely on their cars to get to and from work. As the UK economy continues on its path to recovery, this move provides just the kind of stability needed to give businesses the confidence to invest in their futures, to the benefit of the wider economy, customers and their employees.”

Investment

The FTA’s submission also included the need to address a continued skills shortage in the freight and logistics industry, the importance of investing in infrastructure, and highlights measures that it believes are necessary to ensure that the industry can continue to play its role in supporting the economy as it grows.

Ms Dee continued: "The FTA’s recommendations in its submission to the Chancellor fall into three categories: helping the industry to tackle the current shortage of drivers; easing cost pressures on businesses and families by adopting a different approach to fuel duties; and delivering the improved infrastructure needed to ensure the UK remains competitive.”