Commenting on George Osborne’s failure to reduce diesel fuel duty, FairFuelUK’s Quentin Willson says only: “We are grateful to him for the continuing freeze that’s lasted five years.”
Pointing to last week’s publication of an independent study by the Centre for Economic and Business Research, which concluded that low fuel prices this year have stimulated an additional £11.6 billion of economic activity, Willson adds: “Let’s not forget the UK motorist remains the highest levied tax contributor in Europe.”
His assessment: “[The Chancellor] could have been more courageous for the economy's sake and cut [fuel duty] by 3p. Be warned, this is probably now a fiscal platform for him to increase duty in the April Budget.”
Meanwhile, RHA (the Road Hauage Association) believes the lack of mention of any subsidy for all-important HGV driver training in the Chancellor’s Statement now threatens the UK’s economic recovery.
“Our industry is suffering a chronic shortage of 45,000—50,000 drivers, which is jeopardising supply chains and threatens to put the brakes on the economic recovery,” says RHA chief executive Richard Burnett (pictured).
“We are doubly disappointed as we have figures that clearly show the £150 million [cost of government support] would be more than recouped through taxes paid by the new drivers,” he continues.
“The new driving jobs created by this funding would generate additional income tax, National Insurance, and up to an extra £275 million in fuel duty revenue due to the extra truck miles driven.”
And Burnett adds: “Despite the news that no funding is to be made available today, we shall continue to press our case until a satisfactory outcome is reached.”
As for FTA (Freight Transport Association), the decision not to reduce fuel duty is again being seen a missed opportunity by the government.
“A three pence per litre reduction would have provided much needed economic relief – not only to the logistics sector, which faces continuing difficult trading conditions, but also to the wider motoring public,” comments FTA director of policy Karen Dee.