Tuesday, November 24, 2015
If you’re happy to help finance tax credits, defence spending and cleaning up the diesel emissions blunders look away now. But if you think it’s unfair for drivers to bankroll all these government-spending plans then read on. Our contacts in the Treasury say there’s an 80% chance fuel duty will be raised in the Autumn Statement.  And that’s despite FairFuelUK giving the Chancellor evidence from the CEBR proving that low transport costs have actually improved tax revenues and significantly stimulated economic growth. In 72 hours 12,000 of you also emailed the Treasury stressing the importance of this historic evidence and asking for the current freeze in duty levels to continue for the length of this Parliament. You’ve asked this because it makes clear and prudent financial sense.

But politics doesn’t work that way. When the government gets rudely snubbed on tax credit changes and events force them to unpick their defence cuts where do they come to rattling their tins?  To the long-suffering 37 million drivers who for years have been the uncomplaining financiers of government spending.  And what’s so frustrating for all those hard working businesses and families is that there’s now no doubt at all that keeping fuel duty low (its still the highest of the G7 economies) has brought wide-ranging and powerful benefits to this country’s economy. Nobody can now argue with any authority that stifling economic growth with high transport taxes is a good thing - quite the opposite in fact. Raise duty and you slow economic activity and reduce GDP. This is now an immutable and well-documented fact.

That the Treasury is actively considering raising duty is bad enough but what’s worse is that they may try to wrap it in some pseudo-environmental cloak of helping to improve air quality. Raising the duty on diesel by just a penny may, to the casual observer, be justified environmentally but it will cost us £9 billion in lost economic activity and higher prices and have no effect whatsoever on reducing the number of the worst polluting cars and vans on our roads.  If the Treasury tries to argue that raising diesel duty is going to reduce the level of pollutants in the air this will be a ponderous whopper of some magnitude and they’ll instantly lose both credibility and integrity.  Watch out for this because it’s a PR disaster that will backfire badly and show that they’ve ignored evidence-based research and the wishes of tens of thousands of our supporters. This will be an act of panicked arrogance.

What happens in the next few weeks will be a test of the Treasury’s wisdom and financial credibility. Do they take the easy but hugely dangerous option of raising duty because they badly need the cash or will they understand that every shred of evidence now proves that such a policy will slow our economic growth? You’d think that this would be an easy bet and that reason will prevail.  But desperate politicians can do desperate things and their contempt and lack of understanding for road users continues to surprise everybody. Meddling with fuel duty in the Autumn Statement could turn out to be one of the defining moments in this government’s fiscal history. Get it wrong and they could look very foolish indeed.

Quentin Willson
FairFuelUK
 



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ADD YOUR OWN COMMENTS BELOW THIS POST. THEY ARE VERY WELCOME


[ posted by Jonathan Frater, 24.11.15 13:55 ]

I'm not a great fan of your party but we probably can agree on this, let's try and campaign to keep duty down on fuel. It's the best for our economy!

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[ posted by admin, 24.11.15 14:59 ]

Hi. We are apolitical. What Party do you think we represent. Contact me at campaign@fairfueluk.com - Cheers and thanks for your support....Howard

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[ posted by Ann Ferguson , 24.11.15 14:20 ]

Easy target the motorist is and we pay too much tax plus VAT already.

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[ posted by Mr Les Teasdale, 24.11.15 15:00 ]

Can you please reduce fuel duty & vat on petrol & diesel, if not at the very least freeze prices again, you will make a big mistake putting them up.

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[ posted by rod robinson, 24.11.15 15:24 ]

can you not see that keeping fuel low helps more people to get out and spend more this creates more revenue . and keeps transport costs down ,we not all millionaires with no worries

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[ posted by Sukhdev Gill, 24.11.15 17:32 ]

In my opinion the fuel prices should stay below £ 1-00 a litre

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[ posted by gra howard, 24.11.15 17:51 ]

Some of those people affected by tax credit cuts won't be able to afford petrol even if the price remains as it is. Cutting what they are getting will be the death knell for their cars. Yes , tax credits help those living on low wages. Working people..

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[ posted by Tim atkin, 24.11.15 18:52 ]

Duty is far to high without more increases

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[ posted by Neil Clarke, 24.11.15 19:12 ]

To increase fuel duty would do incalculable damage to the economy. The current high cost of diesel already restricts the growth of my Company

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[ posted by cymon taylor, 25.11.15 05:27 ]

do the right thing for the majority and stop linning your pockets whilst watching poverty grow and implementing your policies which destroy businesses and life. Shame on your greedy ways .NO PRICE RISES AGAINST THE FACTS

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[ posted by malcolm keast, 25.11.15 10:53 ]

Can you please keep fuel duty down?it will affect people on low pay and losing tax credits if you put it up~millions are in poverty already!

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[ posted by Peter Borthwick, 25.11.15 13:21 ]

Fuel duty is far too high already. Many people can hardly afford fuel. Stop putting the cash shortfall on the motorist and treating the motorist as a cash cow.

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