The impact of fuel duty on the British economy is immense and destructive. A new report, Time to Excise Fuel Duty?, argues not only that fuel duty is unfair on motorists, but also that it puts British companies at a competitive disadvantage and acts as a disincentive to work, pushing up the welfare bill. The report sets out a plan to fund reducing fuel duty, to the point that it can be halved and then eventually phased out.
- Economically damaging
With taxes comprising 60% of the cost of a litre of petrol or diesel, fuel duty is contributing around £33bn a year to the Treasury. This tax burden is stifling economic growth by acting as a barrier to trade within the UK, with devastating effects on productivity and