Yesterday the Bank of England cut its growth forecast to close to zero from about 0.8% predicted in May, as the double-dip recession intensifies.The quarterly inflation report indicated no growth for 2012, compared with 2% predicted a year ago.
Mervyn King (Governor of the Bank of England) said: "economy faces headwinds and a black cloud of uncertainty hangs over investment".
What a surprise! FairFuelUK campaigners, backers and supporters have repeatedly said that to get the UK Economy growing again, business and family costs have to be reduced.One of those costs that can be reduced now, and is in the immediate control of our Government, is the level of Fuel Duty levied on pump prices.
A reduction of 2.5p in fuel duty has been predicted by our CEBR research (Read report) to stimulate the economy by 0.3%. It would also generate new jobs. Considering the Bank of England says there will be zero growth this year, surely a Fuel Duty cut is now the preferred option? The resultant positive growth effects would take place in the next 12 months all at no cost to the Treasury. The FairFuelUK commissioned research has not been challenged because we all know this logical tax incentive makes sense.
Lower petrol and diesel prices mean:
- Reduced inflation and so lower shop prices
- More money freed up as a result to invest in jobs and capital projects
- More disposable income for the public to go out and spend
- More profit for businesses giving rise to increased Corporation Tax for the Treasury
It seems a
'no-brainer' of a decision to cut Fuel Duty. We have invited the Government to
share the results of more research that we are doing over the coming weeks. We
will keep up the pressure for a cut in Fuel Duty and keep you posted.
Meanwhile, we are pleased to announce that FairFuelUK now has two impressive new commercial backers with the vision to recognise that a positive view of Fuel Duty as a stimulus for growth, instead of purely a source of tax revenue, is the way forward.
The first is one of the leading new generation of 'challenger' banks, called Aldermore (Read more). The second is Palletline (Read more), a co-operative of more than 65 individual transport companies that work together to deliver freight. Both businesses service the UK and are in touch with the pain of high fuel prices. They perfectly harmonise with our existing backers the RAC, FTA, RHA and Fuelcard Company.
The fight for lower fuel prices and our calls for inquiries into transparent oil pricing go on. This is only possible because of the support of yourself and the hundreds of thousands of other supporters across the UK. The Government is slowly listening to our campaign arguments and we will announce further developments as soon as we can.
In the meantime the FairFuelUK Campaign relies heavily from income generated through the sale of stickers and branded merchandise on our website. Please if you can, visit our website (Campaign support) to purchase some campaign items and so help us to fight for the lower fuel prices we all want.
Thanks for your fabulous support,