Leading Fuel Campaign Group Reaction to Bank of England Slashing UK Growth Forecast
FairFuelUK, backed by the RAC and UK road freight industry, has renewed its call on the Government to cut Fuel Duty as a means of stimulating economic growth. The call comes after the Bank of England is expected to slash its growth forecast for 2012 to zero. FairFuelUK is widely credited with stopping a series of Fuel Duty rises over the last 18 months which would have added a massive 9p per litre to the level of Fuel Duty.
Quentin Willson, national spokesman for FairFuelUK said, ‘Growth is paralysed so it's time the government looked at cutting fuel duty to stimulate activity. If we spend less on fuel tax we'll spend more on other things. The Government acted wisely in abandoning the most recent series of planned rises in Fuel Duty. These terrible figures from the Bank of England show that there is an urgent need to do more. Fuel Duty is one of the few levers at the Governments disposal that can have a dramatic and rapid impact on the rate of growth. Our most research showed that a cut of 2.5p per litre would boost growth by 0.33% and, crucially would be revenue neutral for the Government. The extra tax take on the resultant economic growth would compensate for any perceived loss in Fuel Duty revenue. Petrol & diesel are the oxygen of our economy. These times call for bold and decisive action’.
Peter Carroll of FairFuelUK said, ‘It is particularly telling that a Bank, Aldermore, has recently stepped forward to support FairFuelUK in reaction to the fact that a large proportion of its SME customers are citing high petrol & diesel prices as a major block to growth’.