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Tim calls for rural fuel duty cut

March 2, 2012 9:13 AM

TF at petrol stationWith the news that the rural fuel derogation pilot has started in the Highlands and the Isles of Scilly, Cumbrian MP Tim Farron has written to the Chancellor asking him to announce a similar scheme for Cumbria.

Residents in the Highlands and Islands and the Isles of Scilly will benefit from a 5p per litre cut in fuel prices from 1st March. With this year's budget being held on 21st March, Tim is doing all he can to cut the price of fuel for people throughout Cumbria.

The initial findings of a major report to be published later this week by the Centre for Economics and Business Research shows that a fuel duty cut of 2.5p per litre would create 180,000 jobs in the first year at no net tax loss. In addition, it would boost GDP by 0.33%. An even bolder 5p cut would cost the Exchequer an estimated £1 Billion, a figure likely to be offset by increased consumer confidence and would help create another 30,000 jobs.

Tim said: "In rural areas like ours, a car is not a luxury, it is a necessity of life. Fuel costs are a major issue for families and I am pushing hard to try and make the government act. The government have made some welcome moves. I urged the chancellor to axe the previous government's planned rises last year - something which he did.

"However, there is still more they need to do to help hard-pressed businesses and families in Cumbria. I want to see the rural fuel derogation pilot, which is currently being successfully trialled in the Highlands, brought to Cumbria. This would slash 5p off the cost of petrol at forecourts throughout Cumbria.

"We also need to look at the cost of fuel to help haulage and businesses. Any extra cost at this time is something they cannot afford."