Industry reacts to fuel duty freeze plans
I
ndustry representatives have responded to the Chancellor of the Exchequer George Osborne’s pledge to freeze fuel duty until the 2015 general election, on the proviso that savings can be found in order to finance it.
Osborne announced the plans at the Conservative Party’s annual conference in Manchester at the end of September, as part of the Conservatives’ stated commitment to improving living standards for “hardworking people”.
He told assembled delegates: “We’ve cut fuel duty, abolished Labour’s escalator – and I can tell you today that provided we can find the savings to pay for it, I want to freeze fuel duty for the rest of this Parliament.”
In a press statement, the Road Haulage Association said the announcement would be seen as “all-but granting” a request made by the RHA in its pre-Budget submission in February.
Jack Semple, director of policy at the association, said: “Haulage firms will take on board the Chancellor’s pledge not to increase on this tax on the UK supply chain and will develop their business plans accordingly.”
However, he added that: “We should remember that UK fuel duty is still by far the highest anywhere in the EU. The Chancellor should take the bold step to cut duty, which, as has been demonstrated by independent research commissioned by the RHA for the FairFuelUK Campaign, would boost growth and create jobs.”
FairFuelUK itself also welcomed the announcement, but said the government could still go further. Howard Cox, co-founder of the group, said: “Good news today, but it’s key we do not lose sight of the facts. The government still takes over 60 per cent in tax when we fill up at the pumps, we have the highest fuel duty levels in the EU and the cost of fuel directly impacts adversely on the cost of living, investment, jobs and running businesses.
“FairFuelUK will continue to campaign for a cut in fuel duty, not just these welcome cancellations in planned tax hikes. FairFuelUK since its inception has helped save over £20 billion in potential tax increases for hard pressed motorists, the haulage industry and small businesses. This will rise to over £30 billion in savings by 2015 if the Chancellor is true to his word.”
