Tax and spend' may not be quite what it seems

摘要

It's official: according to a Treasury report published as we go to press, cutting fuel duty does have a positive impact on the economy after all - an argument FairFuel UK, FTA (Freight Transport Association), RHA (Road Haulage Association) and others have been promulgating since 2011. The report, 'Analysis of the dynamic effects of fuel duty reduction', indicates that the Treasury now believes costs associated with its frozen fuel duty can be offset against the extra economic activity they cause. Indeed, the department's modelling suggests that freezing duty to date will boost the economy by £7.5bn - half the lost revenue - over 20 years.