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Suffolk: MP's Want Fuel Tax Increase Scrapped
Two of our MP's in Suffolk are urging the Chancellor to scrap a planned increase to fuel tax in January.
Waveney MP Peter Aldous and Bury St Edmunds MP David Ruffley have written to the Chancellor urging him to scrap the increase in fuel duty proposed for January 2013 in his autumn statement on 5th December.
Mr Aldous is continuing his campaign on fuel costs intent to ensure that families and business in the Waveney area, many of whom rely on their vehicles for essential business or domestic transport are not hit by fuel price rises.
The MPs have received the support of the Suffolk Chambers of Commerce who are concerned about the impact on local businesses,
National Institute for Economic and Social Research predicts the following impact of a planned rise in fuel duty of 3p per litre:
- 35,000 Jobs lost, growth cut by 0.1%
- A 3p Fuel Duty rise will only improve the fiscal deficit by about £880M. This means 40% less tax revenue than Government predictions and is in stark contrast to their forecasts that each 1p fuel duty increase would bring in £500M
- Consumer spending will be about 0.1 per cent lower next year than would be expected if the fuel duty were left at its current rate. This is the dominant factor behind the expected loss of GDP, which is estimated to amount to approaching £1 billion (in 2009 prices) in 2013
- The resultant rise in inflation could induce the Bank of England to raise interest rates earlier than currently anticipated. The negative impact on consumers and GDP overall would be expected to be approximately doubled, and this policy could lead to job losses in excess of 50,000
Mr Aldous said:
“I am extremely concerned that at a time when people are struggling to make ends meet and businesses are faced with various challenges that we do not go ahead with these fuel tax rises. This is a particular issue for ordinary Waveney people many of whom live in rural areas and who rely on their vehicles. I shall continue to press the Government and do what I can to prevent the increase in fuel duty going ahead.”
Mr Ruffley said:
“My constituents in Bury St Edmunds, Stowmarket, Needham Market and the villages, have seen a rise in the cost of living that is playing havoc with their household budgets. A key part of that is the high cost of filling-up their car with petrol. I believe that Chancellor should recognise that he can make a contribution to easing the squeeze on household finances by delaying the 3p fuel duty increase in January. And ideally, depending on what the borrowing figures come in at on 5 December, he should consider freezing fuel duty to the end of the Parliament”.
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