FTA call for fuel duty cut in March Budget

The Freight Transport Association has called on the Chancellor of the Exchequer to go further than freezing fuel duty, by announcing a 3p per litre cut in the upcoming Budget statement on 19 March.

In a pre-Budget submission to George Osborne, FTA urged him to consider the economic benefits that could result from further relaxing the Treasury’s approach to fuel duty, and added that a reduction would “ease cost pressure on domestic freight activity.”

James Hookham, FTA managing director of policy and communications, said: “The issue of high fuel prices has not gone away, and there are still constraints on growth and economic expansion. The Chancellor would give a real boost to balancing the economy by reducing fuel duty be 3p per litre. FTA’s research shows he would get his money back through higher tax receipts as trade improved and jobs increased.”

In addition, FTA said Osborne should reinstate the duty differential for used cooking oil as a biofuel in commercial vehicles.

“With the renewed focus on changes in the climate and the need to reduced greenhouse gas emissions, FTA calls on the Chancellor to recognise the small but measurable contribution that the recycling of used cooking oil can make by converting it into bio-diesel. Reinstating a lower duty rate will make this process financially, as well as environmentally sustainable,” Hookham added.