The PRA’s long campaign for a cut in fuel duty looks as if it is about to succeed after reports that a reduction will be made in the Autumn Budget.
“The PRA has welcomed hints carried by national media that the Treasury may be considering fuel duty cuts in the upcoming Autumn Budget,” commented PRA chairman Brian Madderson.
Senior sources are reported to have confirmed that the Government would announce a 2ppl fuel duty cut later this year – the first reduction of the tax in eight years.
Madderson continued: “We have been exchanging correspondence with the Treasury since the start of the year on a number of taxation issues, with the present high level of fuel duty as the primary concern.
“The former exchequer secretary Robert Jenrick MP, arranged for the PRA to meet the heads of fuel taxation at both the Treasury and HMRC earlier this summer.
“At the in-depth review, PRA stressed the need for government to re-visit its report on the dynamic effects of fuel duty modelling (2014), which confirmed the positive outcome on the economy of cutting this deeply regressive tax.
“In a post-Brexit environment, fuel duty cuts would help stimulate the economy and must be introduced as soon as possible by the new Chancellor.”