Government is ‘brave’ to sacrifice fuel duty, says campaign group12 June 2014

Fuel duty campaign group FairFuelUK is applauding the government's agreement that lower fuel duty can stimulate economic growth, after a meeting at the treasury on Monday (9 June 2014) hailed by both parties as "constructive".

Fairfuel's spokesperson Quentin Willson and founder Howard Cox met with Danny Alexander, chief secretary to the treasury, who presented the government's recently published fuel duty modelling.

This now supports the fuel campaign group's contention that lower fuel duty would increase jobs, GDP and economic activity.

The government's economic model now suggests that, following a 1p cut in March 2011 and the continuing freeze in duty, GDP will increase by 0.3% to 0.5% in the longer term – even more than FairFuelUK's own prediction of a 0.2% increase.

Quentin Willson called it "an historic moment in fuel taxation", adding: "No other government has been brave enough to sacrifice fuel duty revenues to stimulate growth. And it's worked."

Danny Alexander said FairfuelUK's campaign has made "a very significant impact" and added that he intends to maintain the dialogue.

Author
Laura Cork

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