Fuel Duty Cut Gaining Momentum Across the UK

The HGV Training Centre is one of the largest and most expansive providers of commercial driver training in the UK. As such, we spend an awful lot of money on fuel to operate the vehicles we use in our training sessions. From our HGV training in East Renfrewshire to the programmes we operate in England’s South West, one thing is constant: fuel charges add to our budget significantly. So it should be no surprise that we are among those keeping an eye on a potential fuel duty cut now be entertained by the Chancellor.

A group of organisations that includes the Freight Transport Association, that Road Haulage Association, FairFuelUK, and hundreds of members of Parliament just delivered a letter to Chancellor Osborne in support of a 3p cut in the fuel duty. In that letter, the group referenced numerous consumer studies as well as government data proving that such a cut would be economically beneficial.

Fleet News UK reports that a recently conducted FairFuelUK study showed 75% of UK drivers support a cut in the fuel duty. If such a cut is not possible, more than 92% support freezing it at current levels. It is as plain as the nose on one’s face that drivers do not want any increase in the fuel duty at all and, if possible, want to see it reduced.

Lower Fuel Costs Equals Better Economy

FairFuelUK founder Howard Cox told Fleet News UK that “the Chancellor knows very well through…extensive imperial evidence that cutting fuel duty is proven to accelerate growth in GDP.” He went on to explain that lower fuel costs encourage consumer spending, create jobs, and have a positive impact on inflation. He is not alone in his assessment, either.

The benefits of reduced fuel duty have been recognised by the Treasury as well as the Bank of England, the IMF, the CEBR and NIESR, according to Cox. In 2014, the Treasury issued a report that suggested GDP would grow by 0.5% simply by not increasing fuel duty any higher than it currently is.

Driving to Succeed

All of this makes perfect sense when you consider how important driving is to the UK economy. Indeed, more than two-thirds of all the consumer goods and raw materials transported in this country make some portion of their journey on an HGV or van. Furthermore, both local and regional transport throughout the country relies heavily on bus service. Add in all the cars and coaches on the road and it is clear how important fuel is to just about everything we do. If we can spend less on fuel, the amount saved can be spent on other things.

As a leading provider of HGV training in East Renfrewshire and the rest of the UK, we know that having to spend less on fuel will enable us to expand our business in other areas. That would ultimately increase Treasury revenues by generating more business activity. From our perspective, that’s a good thing.

Sources:

Fleet News UK – https://www.fleetnews.co.uk/news/fleet-industry-news/2015/11/09/fuel-duty-cut-will-benefit-the-economy-fairfueluk-tells-chancellor