Tuesday, March 26, 2013

Treasury minister not convinced by FairFuelUK duty argument

  • 21 March 2013
  •  
  • By Laura Hailstone of Commercial Motor
Danny Alexander with FairFuelUK's Quentin Willson in the Treasury

Treasury minister Danny Alexander has told Commercialmotor.com he is not convinced by the economic research FairFuelUK (FFUK) presented to him last year that showed a cut in fuel duty would actually stimulate growth and create jobs.

"There are some assumptions in the National Institute of Economic & Social Research (NIESR) report that the Treasury considers to be pretty questionable; I don’t necessarily buy the analysis to be honest,” he toldCommercialmotor.com this morning during a one-to-one interview.

He added that there were some "important bits of evidence in the report” and that he had opened the door to FFUK to have further meetings with the Treasury to debate the findings of the report further.

Defending yesterday’s Budget announcement of a freeze in fuel duty instead of a cut, the minister said:  "As a country we have big economic problems. Our priority has been to cut income tax for working people, which is a benefit to people in your industry as well as everywhere else. I hope the employment allowance we announced yesterday - a national insurance break for businesses - will also make a difference to road transport businesses.

"But the priority has been to put more money into peoples’ pockets, and the income tax cuts and the freeze of fuel duty all help to do that.”





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[ posted by Ivor Shaw, 26.03.13 14:44 ]

By reducing the number of MP`s by half, and also the number of local councilers, by the same, we could save enough in
public funds to be able to reduce the fuel tax by at least 290%.

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[ posted by robert, 26.03.13 15:03 ]

i think these people come from another planet, do they not realise that every thing has to be transported by road and if it is by more than three companies that its times three price rise as each company put it on the price and the end user pays the price,US THE PUBLIC, nxt election i can see a great wave going to u kip, people have long memories.

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[ posted by Scott Lawrence, 26.03.13 15:21 ]

By reducing the duty tax on fuel will have a very positive impact on the UK economy, for example more people will travel by car to visit more tourist areas boosting local economies. Also goods should become cheaper as road haulage costs would reduce. these are just some examples. If the Government reduced this ridiculous tax significantly think of the increase in jobs etc... as costs come down and tax receipts would increase.

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[ posted by James Apps, 26.03.13 17:23 ]

The issue is to reduce the tax take on fuel; perhaps to halve it and replace the rest with VAT instead of adding VAT to an already highly taxed commodity. The tax take needed can then be spread on to other products and services so that the cost of transport is reduced to allow businesses to operate at competitive rates that will stimulate the general public to use the services instead of cutting back on their normal spending. A lower fuel tax take will stimulate the economy by encouraging more ordinary people to spend on services where at the moment they are holding back. I agree that jobs will increase if costs of haulage is lowered.

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[ posted by Kenneth Johns, 26.03.13 18:51 ]

Car fuel in opec countries is sold to those nations drivers for as little as 18p per ltr !....and in other countries as little as 30p per ltr....this is about the only country where drivers are FLEECED by greedy government. there is a constant drive towards seeking out new ways to tax the nation up to the hilt !!!.....motivated by pure greed, by politicians bent on lining their own nests, and no other reason.....K.Johns

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[ posted by Garry Bulmer, 26.03.13 18:51 ]

congratulations on the success so far long may it continue . The main problem is though as the government cut their share of the prices the fuel cartels take up the difference it is a pity we can't do something about that also so the government aren't losing any revenue in the long run it is just coming from a different direction . diesel prices in the west midlands where I live average between £1.43 & £1.45 per litre . It costs me on average £30 a week just backward & forward to my place of work [ that's just in fuel ] I don't run a big expensive car just an old banger . with my wage having been static for the last 4 years I can't afford to change the car to anything more economical . as they say I am in a fuel poverty trap . The only way to save is in 15 months time I retire after 50 years of work then I will be able to get rid of the car & save quite a lot of money that it at present costs me to go to work . I only run my car for work other that that it is parked on my drive . I enjoy motoring but it is getting much too expensive a hobby . I suppose it ok for those in power who get all their travel expenses paid to ride in luxury limousines around the country & all at the publics expence . they don't I am afraid live in the real world where you have to pay your own way in life . please feel free to publish this correspondence or to comment on it if you see fit . my email address is as above G Bulmer [Mr ]

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[ posted by peter young, 26.03.13 19:17 ]

i agree with roberts comments about coming from another planet, but have some of these ever had a proper job.

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[ posted by Colin Bibby, 27.03.13 10:08 ]

Reduced fuel duty will help stimulate this static economy - any reduction will progress through the economy, if nothing else by reduction in distribution costs. Current efforts to stimulate the economy have had little or no results so its time to try stimulation.

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[ posted by Iain M. Smith, 27.03.13 14:49 ]

I appreciate that there are many arguments put forward by fuel production and trading companies, the financial and it's malpractices, the £/$ scenario, the fuel tanker drivers' disputes and all the additional red herrings spun to the press and onwards to the consumer. The fact is that unless something is done to radically reduce the consumer prices for road vehicle, train and aircraft fuels together with bringing the Power Companies to heal, especially regarding the upwardly spiraling cost of domestic energy services, which in my opinion should never have been taken out out the Public Domain, I truly fear for the economic future on the United Kingdom. Bear in mind that more realistic fuel and energy pricing would greatly assist in our general economic growth as manufacturing, distribution within the UK , Tourism and the export of our goods and services all require fuel.

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[ posted by bert spice, 28.03.13 16:56 ]

what ide like to know is why diesel is dearer than petrol when it takes less refining..

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[ posted by PAUL JONES, 11.05.13 00:48 ]

Please keep fuel poverty down to a mimimum, for the majority of the public to have a better living.

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