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RAISING FUEL DUTY WILL COST UK 8,000 JOBS, REPORT WARNS

Chancellor Rishi Sunak is said to be considering increasing fuel duty by two to three pence, but a report from the Centre for Economics and Business Research (CEBR) has said would only bring in £470 million, dropping to £90 million over 20 years, and potentially crash the economy.

 

The Daily Mail reports that CEBR’s report thinks the tax hike on fuel could cut the GDP by over £600 million and could lead to 8,000 job losses. Fuel duty has been frozen for 10 years and has boosted household spending by £24 billion.

The report revealed that the annual cost of a 2p increase in fuel duty would cost £161.60 annually, affecting lower-income families and tradesmen the hardest.

It read: “Many van drivers have had to face a sharp increase recently in the range of restrictions on them from road closures, lane closures, 20 mph speed limits, increased congestion charges and associated enforcement penalties.

“On top of this, these measures have created unnecessary traffic jams which have further penalised the sector.”

Road Haulage Association chief executive Richard Burnett added: “UK hauliers are responsible for keeping the UK economy moving. As the nation fights against the impact of Covid19, operators continue to work around the clock to keep shop shelves stocked and hospitals and healthcare workers supplied with PPE.”

He added that every penny increase, whether that’s the price of fuel or a hike in the duty, adds over £400 a year to the running costs of a typical 44-tonne truck, and with the added uncertainty of Brexit, it could mean the end of the road for many.

“Chancellor, you need the services this industry provides more than ever. Please, don’t make UK hauliers foot the bill for keeping the nation safe and fed.”

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