MP makes final plea to Chancellor to cut fuel duty

By Tim Clarke Tuesday 27 November 2012 Updated: 28/11 12:06

WORCESTER MP Robin Walker has made a final plea to Chancellor George Osborne to cut fuel duty when he delivers his Autumn Statement next Wednesday (December 5).

The Chancellor is widely expected to postpone a 3p rise in duty which is scheduled for January after coming under increasing pressure from campaign groups including Fair Fuel UK as well as parliamentary colleagues.

But Mr Walker wants the Treasury to go a step further by actually cutting duty to ease the burden on families in Worcester where prices at the pump remain among the highest in the region.

In a letter to the Chancellor, the city's MP points to research by organisations including the AA and Fair Fuel UK which claim a reduction in fuel duty could actually bolster the UK's struggling economy.

"This is something which impacts on absolutely everyone whether they drive or not because it affects things like the price of food in the shops and the whole economy," Mr Walker said.

"The research I have seen suggests lower fuel duty would probably lead to a rise in the economy, whereas higher fuel duty would damage it. I think there is an argument that cutting it would actually result in more tax revenues for the Government elsewhere. It's a a case I have been arguing consistently for the last few years."

Fair Fuel UK claim a 3p increase in fuel duty in January would destroy 35,000 jobs, cut growth in the UK economy by 0.1 per cent and put even greater strain on household budgets.

But the group say a 3p cut in the New Year would create 70,000 jobs and boost growth in the economy by 0.2 per cent.

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