FairFuelUK has been invited to take part in face-to-face talks at the Treasury on Monday (October 29) to discuss the impact of fuel duty on the UK economy, following discussions between the campaign group and chief secretary to the Treasury Danny Alexander.
The meeting takes place ahead of the government’s planned 3ppl rise in fuel duty now scheduled for January 1, 2013. Analysis of research undertaken by FairFuelUK on the impact of fuel duty on UK growth and the economy will form the centre piece of the discussions.
Quentin Willson, national spokesman for FairFuelUK, said: “This is an enormously positive gesture from The Treasury for FairFuelUK to present their ground-breaking research on the impact raising fuel duty has on the UK economy.
“The fact that Treasury figures are interested and listening sends an important message to all the business and families out there deeply anxious about the forthcoming 3p rise in January. This sort of open-minded engagement is exactly what this country needs to see.”
FairFuelUK’s research findings suggest that a 2.5p reduction in fuel duty would result in the creation of 175,000 jobs within a year and 180,000 jobs within five years of such a reduction. Such a reduction, it estimates, would not result in any fiscal loss to the government, while GDP would receive a boost of 0.32% within a year and 0.34% within five years.
The research found that a more significant 5p reduction could generate an additional 200,000 jobs at a net annual cost to the Exchequer of around £1.2bn within a year, which would fall to £1bn per year within five years. The boost to GDP would be smaller in this scenario – 0.28% after a year and 0.30% after five years.