A 3P-A-LITRE rise in fuel duty planned for January could lead to 35,000 job losses, according to campaigners.
The rise could also see a 0.1 per cent cut in economic growth, the report prepared for the FairFuelUK group said.
As a result, the tax increase would bring in only just over half the expected extra tax revenue – £800 million rather than £1.5 billion, said the report.
Speaking ahead of a meeting with Treasury officials today, Quentin Willson, the national spokesman for FairFuelUK, said: “We have always argued that fuel duty shouldn’t be the Treasury’s sacred cash cow – it should be used as a lever for growth.
“Robust financial research and modelling shows if you raise duty you destroy jobs and damage growth.”