
Chancellor George Osborne says he can’t afford to cut fuel duty. He says the country has ‘run out of money’.
We say he can’t afford NOT to cut fuel duty, or large swathes of UK business won’t survive to help generate the wealth needed for the present recovery, and financial stability of future generations.
No-one could possibly disagree that Britain’s finances require a drastic rethink but clawing back a deficit from taxation alone is not the best solution; it is just the easiest option.
Wealth is generated from a strong business base and a confident market. It comes from a good product being bought by consumers who have the need, and available finance, to buy. Without the wealth at the bottom you don’t have the demand for the product at the top.
Motorists, whether driving professionally, for leisure, or to commute to their workplace, are just an easy target.
On just ONE DAY of last week, our UK operations tracked over 3,000 miles of driving. With an average of 35 miles per gallon, that’s almost 390 litres of fuel raising tax of around £320. That amount is soon to rise even further. Imagine multiplying it by the number of different transport companies you see on the road and you begin to understand why motorists are treated as easy pickings!
Of course, we could pass this ever increasing cost on to our customers, who would then, in turn, pass it on to their own.
However, this is an unsustainable solution and sooner or later the chain is likely to break forcing companies out of business and employees to lose their jobs.
Once that happens, the tax from fuelling the supply chain would disappear, along with the income taxes previously paid by the now redundant workers. Government would probably then have to provide job seeker benefits to those same workers. The overall result? – a bigger deficit in government funds than we started with.
George Osborne says he can’t afford to lose the income provided from the tax on fuel without making additional cuts to public services. However, campaign group Fair Fuel UK commissioned a study which concluded that by reducing fuel duty by 2.5ppl George Osborne would actually grow his income from the creation of 180,000 new jobs.
The government has recently announced a huge increase in infrastructure projects in the UK – including new and improved roads. It does beg the question: what’s the point of building new roads if nobody can afford to drive on them?