In the eventof an Emergency Budget in October, reports suggest that Prime Minister, BorisJohnson, is planning slashing fuel duty by 2p per litre.
Althoughfuel duty has been frozen at 57.95p per litre for nine years, the cut – whichwill cost the Treasury an estimated £1.5 billion – is designed to boost the UKeconomy and help drive further income to the Exchequer.
TheFairFuelUK Campaign has warmly welcomed the proposals, deeming it to be a “commonsense” approach to energising commercial fleets amid the backdrop of a no-dealBrexit.
RobertHalfon MP, said: “For nearly 10 years, with FairFuelUK, I’ve been campaigningto cut fuel duty. Everywhere you look, drivers are hit by taxes and demonisedfor having no choice but to use their vehicles.
“The PrimeMinister and the Chancellor’s common sense support of the commercial heartbeatof the economy must be welcomed.
“It’s theright time the financial strain on the backs of hardworking motorists was alleviated.”
Theprospective cut in fuel duty has also been well-received by the FreightTransport Association (FTA) and the Road Haulage Association (RHA), with thelatter insisting a price drop would level the playing field between UK hauliersand their “European counterparts”.
RichardBurnett, CEO, RHA, said: “After many years of tireless lobbying with FairFuelUKit would appear that the penny, quite literally, is beginning to drop.
“It is clearthat the Prime Minister and the Chancellor are listening to us. For years UKhauliers have been operating at a disadvantage to our European counterparts.
“A cut infuel duty will go some way to levelling the playing field with the rest ofEurope. This is vital to help stimulate the economy during these challengingtimes.”
ChristopherSnelling, policy director, FTA, said: “This would be excellent news andsomething FTA has been campaigning with FairFuelUK for years.
“A cut wouldmassively stimulate the UK economy whilst mostly paying for itself asGovernment would get more tax from other sources as a result.
“Fuel dutyis a blunt tax that does little for environmental purposes in haulage, ascurrently there is no alternative to diesel in the mass market and the goodsstill have to be delivered.”
The new cabinet are yet to sign off the fuelduty proposals, with some ministers reported to have concerns about the cost ofthe policy. However, the positive response from the transport sector willsurely encourage most to approve the plans and help cut the cost of fuel at thepumps by more than the 13% real-terms drop since 2011.