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Budget 2016: Fuel taxes

Fuel tax freeze ‘ensures continued GDP growth’

fuel duty carsFuel Duty was frozen for the sixth year as a recognition that households had borne the higher costs caused when oil prices were higher.

Jerry Stewart, director of Eagle Couriers and Fellow of the Institute of Couriers, said: “Following weeks worth of rumour that we were set for a 2p rise, I am delighted that George Osborne has seen sense and frozen fuel duty once again – this will allow firms such as Eagle Couriers to plan for future growth and employment in the sector to grow.

“We would however still like to see a move towards an introduction of a stabilising mechanism as we believe that businesses and individuals should not expect the huge fluctuations at the pumps which we has become the norm.”

Quentin Willson of FairFuelUK said: ‘Freezing duty is hugely significant. The Treasury now has five years of evidence to prove that keeping fuel duty low has helped improve GDP, stimulate economic activity and actually improve tax receipts. The Chancellor knows that low transport costs have had an enormous economic benefit to the UK over the last five years.”

Howard Cox, founder of FairFuelUK, said: “Our intense lobbying and campaigning hit home to the Treasury. By not hiking fuel duty Osborne has ensured that £5bn is not taken from consumer spending in this Parliament.

“His decision has ensured continued growth in GDP, low inflation and new jobs will not be compromised, with added benefits of more VAT, income and corporation tax revenue too. Hard working Brits will be relieved, but he should have been braver and cut duty for even more benefits to the economy. But that would be churlish to complain today, FairFuelUK is hugely grateful to maybe the next Prime Minister and his sensible actions today.”

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