CEBR Fuel Duty Impact - Nov 2020

2020 11 • Fuel duties are an inefficient way of raising revenue with one of the lowest ‘recovery rates’ • The tax is disappearing anyway as drivers move away from fossil fuel • Meanwhile the tax is regressive and damages the regions. • It lands a further blow on two vital industries that have already been badly hit by government policy recently • It damages the economy, causes unemployment and raises inflation • The 9 year freeze has been very successful, reducing the CPI by 6.7% and raising household incomes by £24 billions. • With the current policy proving so successful, why abandon it? Conclusions