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Cut fuel duty for UK benefit, says RHA

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Author: | Updated: 23 Oct 2014 15:35

A reduction in fuel duty is needed if the UK is to flourish in Europe, so says the Road Haulage Association (RHA).

Fuel duty – a tax applied to petrol and diesel before it is sold - currently makes up more than half of pump prices in the UK.

Proposed rises to fuel duty have been postponed or scrapped in Budget and Autumn Statements before they can be implemented, resulting in fuel duty remaining unchanged since 2011. Chancellor George Osborne has also promised it will remain the same until after the next General Election in May 2015.

However, Richard Burnett, the new RHA’s Chief Executive believes the time has now come for fuel duty to be decreased.

Fuel duty – a tax applied to petrol and diesel before it is sold - currently makes up more than half of pump prices in the UK.

He commented: “Road haulage is a key service industry to the UK economy and relies almost entirely on diesel, yet diesel duty remains by far the highest in the EU.

“If we are to gain a competitive edge over our European counterparts, we have to see a 3p per litre fuel duty cut.

“Lower fuel duty is good for jobs and for growth – that was shown by the NIESR report that was commissioned by the RHA.

“British hauliers pay £12,000 a year or more duty per truck than most of their continental competitors. That damages the competitiveness of UK businesses and pushes up prices in the shops and for hauliers, it means increased pressure on cash-flow and makes it more difficult to fund investment.

“Lower duty rates are not just a vote winner but a winner for investment, growth and jobs.”

Although no further increases have been ruled out, it is unlikely that fuel duty would be decreased in the Autumn Statement, set to be announced on December 3.

Many believe a Tory victory in the next General Election in May 2015 would almost certainly see it rise by at least a couple of pence per litre.

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