Reports have suggested the new Prime Minister is considering cutting fuel duty by 2p per litre ahead of leaving the European Union later this year.
According to newspaper reports, an emergency Budget could be held in October which would include the cut, which – if approved – could cost the Treasury £1.5 billion a year.
Fuel duty has been frozen at 57.95ppl since 2010-11 and the FairFuelUK Campaign welcomed the news and said that a cut in fuel duty would boost the UK’s economy.
Robert Halfon MP, who supports the group, said: “For nearly 10 years, with FairFuelUK, I’ve been campaigning to cut fuel duty. Everywhere you look, drivers are hit by taxes and demonised for having no choice but to use their vehicles. The Prime Minister and the Chancellor’s, common sense support of the commercial heartbeat of the economy must be welcomed. It’s the right time the financial strain on the backs of hardworking motorists was alleviated.”
The Freight Transport Association similarly welcomed the possible cut: “This would be excellent news and something FTA has been campaigning with FairFuelUK for years. A cut would massively stimulate the UK economy whilst mostly paying for itself as Government would get more tax from other sources as a result,” said Christopher Snelling, the group’s policy director. “Fuel duty is a blunt tax that does little for environmental purposes in haulage, as currently there is no alternative to diesel in the mass market and the goods still have to be delivered.”