Fuel lobby welcomes ‘unprecedented’ Treasury talks
A campaign group for lower petrol and diesel prices is due to meet the chief secretary of the Treasury, Danny Alexander, in what it describes as “unprecedented” talks.
FairFuel UK has been invited to talks in what some have suggested as a signal that the government is about to re-consider its fuel taxation policies.
At the moment, diesel and unleaded petrol is due to increase this January by 3p per litre, following George Osborne‘s decision to postpone the rise, which was due in August.
But some within the fuel lobby anticipates that the Treasury could be about to change policy with an announcement after meeting, which would delay once again this rise, or cancel the so-called escalator altogether.
Quentin Willson, national spokesman for FairFuel UK, told Channel 4 News that the group would present what he described as “very persuasive” research that suggests that high fuel taxation is holding back growth,
“They want to put fuel duty up because they see fuel taxation as a cash cow,” he said. “Our argument is that it chokes the economy and destroys jobs. If the government goes ahead with the 3p increase it will harm growth. They should consider an alternative approach.”
If the government goes ahead with the 3p increase it will harm growth. They should consider an alternative approach. Quentin Willson, FairFuel UK
With the chancellor’s autumn statement approaching, Fair Fuel UK has put together an alternative approach to fuel duty. Mr Wilson said it was part of the organisation’s strategy to move the argument on from “ouch that hurt” to something more constructive.
He added that it was “unusual” for the government to ask to speak to his group. “In my experience it is unprecedented for a politician of that seniority to reach out in this way.”
However the Treasury has claimed that its meeting with Fair Fuel UK is no different from those with any other group.
The chief secretary to the Treasury, Danny Alexander, said: “It is right that the Treasury engages with FairFuel UK to discuss technical issues around the impact of the cost of fuel on the economy.
“What matters to motorists and businesses is that fuel is now 10p a litre lower than under the previous government’s plans. This government has done more to support to motorists and businesses than any other.”
