PRA AUTUMN STATEMENT 2016 COMMENT
Published 23/11/2016 00:00:00 in Press Releases
Comment from Brian Madderson, Chairman of the Petrol Retailers Association (PRA)
The PRA welcomes the Chancellor’s decision to invest in road infrastructure and not to raise duty on fuel.
In recent weeks, we have been meeting with Treasury officials to discuss the impact of a fuel duty cut and have made a number of representations to ministers about the economic impact of an adverse exchange rate and higher oil prices.
Petrol retailers have calculated that average UK pump prices could reach 120 pence per litre by the year end, a significant price increase of nearly 20 per cent in just twelve months.
HM Treasury’s own study (2014) into the dynamic effects of fuel duty reductions has shown, the additional spending generated from cutting fuel duty has brought in more income tax and VAT than would have ever been raised by letting fuel duty rise.
In 2016 the freeze in duty boosted GDP by 0.57%, generated 112,000 new jobs and put £5.3bn back into hard working Brits consumer spending. It also bolstered tax revenues by 0.2%.
Trend volume sales in diesel have delivered a tax windfall to the Treasury of £1 billion and we will be looking to persuade the Chancellor to deliver an actual fuel duty cut in the Spring 2017 Budget.
NOTES TO EDITORS:
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The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.