Brexit boost! Boris plans first fuel duty cut in eight years sparking election talk
BORIS JOHNSON is considering a 2p per litre fuel duty cut in what would be the first reduction to the motoring tax in eight years.
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A source told the The Sun the Government will announce the duty is to be slashed in the upcoming budget. According to industry insiders, officials were considering a 2p cut which would cost the Treasury £1.5billion. Fair Fuel UK’s Howard Cox told The Sun: “This would have a huge positive impact on business, on inflation, on consumer spending and GDP.”
Hauliers claimed Mr Johnson would be “saving jobs” in an industry that has seen the biggest number of firms collapse in 12 years.
Road Haulage Association chief Richard Burnett said: “It seems the penny, quite literally, is beginning to drop.”
After a huge campaign from organisations like Fair Fuel UK, George Osborne cut fuel duty in 2011.
Since then fuel has been frozen at £57.95p per litre.
During his race for Conservative leadership, Boris Johnson said he would “love” to be able to continue the freeze if he made it to Downing Street.
At the G7 summit in Biarritz, Mr Johnson said he was unable to comment on “fiscal” events after being challenged on the pledge.
Edmund King, AA President, said: “Thanks to continued pressure this is the first cut in fuel duty for nearly a decade.”
The Sunday Times said Mr Johnson’s team were working on an emergency budget for October.
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This would include the possibility of a cut in fuel duty.
When asked about the fuel duty cut, transport minister Grant Shapps told Sky News it was a question for Chancellor Sajid Javid.
He added: “There hasn’t been an announcement about fuel.
“I don’t think it necessarily means anything at all.”
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Mr Shapps claimed the Government’s focus is on its number one priority of delivering Brexit on October 31.
A source told the Mail on Sunday that the move would send "a clear message that the Prime Minister is fully behind business in the run-up to Brexit ".
Plans for the fuel duty cut are part of a series of pledges from Mr Johnson since he became Prime Minister.
Other plans include a boost for left-behind towns and extra resources for crime-fighting.
These have fuelled rumours Mr Johnson is keeping his options open for a snap general election.
The Office for Budget Responsibility’s latest forecast claims fuel duty is expected to raise £28.4billion in 2019-2020.
This is an equivalent of £1,000 for every household in Britain.
A right-wing think tank argues fuel duty should be increased to tackle air pollution in the UK.
Bright Blue suggested Britain’s departure from the EU provided an opportunity to raise standards of air pollution.
They also suggested removing the existing freeze on fuel duty.