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AA urges Chancellor not to inflict "more pain for no gain"

25 March, 2010

The AA has vowed to look closely at the phased introduction of further fuel duty increases, warnng the Treasury it should rethink its proposals if prices keep

increasing.

Professor Edmund King, AA President, said: "Staging the fuel duty increase will avoid a big hit in an April Fuel's Day Fiasco, however a 1p increase will hit still hit motorists hard with record prices at the pumps. Perhaps the thought of 32 million fuming drivers and voters influenced Government thinking."

King added that the AA would "examine closely any phased introduction of further fuel duty increases of 1p in October and the remainder in January". He warned that each 1p increase was 50p a tank and 2.12 a month for a family with two cars, an increase higher than the average increase in council tax for 2010-11(1.56), adding: "If pump prices continue to increase the Treasury should rethink their proposals."

According to King: "In the last Pre-Budget Report, the Treasury admitted that high fuel prices make drivers cut back and reduce tax receipts. It therefore makes sense not to increase the burden on families and businesses struggling to recover from recession inflicting more pain for no gain, and undermining economic recovery."