The award-winning public affairs campaign that has been mainly responsible for securing the 10 years freeze in Fuel Duty responds to the rumours that the Chancellor will increase Fuel Duty 5p, to pay for the extension to Universal Credit and pay off Covid Debt.
- “Hiking fuel tax is like putting an even bigger hole in a sinking ship. 5p on duty raises only a fraction of the cost of the hike in Universal Credit. It is pure vindictiveness forced by a ill-informed and uncharacteristic Tory green agenda, that the Treasury are lashing out at motorists.”
- “It will be disingenuous hitting the world’s already highest taxed drivers and logistics businesses so hard and continuing with the HS2 white elephant exorbitance. Hiking a levy that makes up over 65% of the cost of filling up will be political suicide, cost jobs, raise inflation, and hit white van man and low-income families hardest. Thousands of hauliers working to miniscule margins will go to the wall.”
- “Time and time again the CEBR has shown the negative economic effects of increasing fuel duty. The 10 years freeze on fuel duty is slowly bringing the UK rate of tax into line with the rest of Europe. It has reduced the CPI by 6.7% and raised household real incomes, especially those of neediest households, by £24bn. Why abandon it when taxing fuel hits the poor cruelest, with the North suffering most and London least?” See Cebr Report
Proportion of total household expenditure on petrol and diesel by region. The Cebr also have shown that London based drivers pay a third less of their income than those motorists in Northern Ireland. Wales, Midlands and the North pay twice as much as London drivers too. Any fuel duty hike will be devastating to these regions.
Howard Cox founder of FairFuelUK calls on Rishi to “Have the guts to cut fuel duty and watch the economy rocket and then wallow in the subsequent growth tax revenue that will pour into the Treasury to pay off the Conservative’s Covid debt. Hiking taxes to pay off the nation’s massive debt will be fatal. The way out of this fiscal mess is to turbo charge the economy. Incentivise don’t punish and revert to traditional Tory economic fundamentals. ”