AN MP serving communities in Wharfedale is demanding price at the fuel pumps is slashed to create tens of thousands of jobs and boost extra income.

Shipley constituency MP Philip Davies said the cut was a win-win situation for families and for Government and his plea is backed by research.

Speaking in Treasury questions in the Commons he said: “The National Institute of Economic and Social Research has shown a 3p cut in fuel duty would generate 70,000 new jobs, stimulate GDP by 0.2 per cent and help lower inflation.

“The Centre for Economics and Business research said a cut would be even more beneficial to the economy and self-financing. Does the Government accept that a cut in fuel duty will be self-financing and provide a boost to the economy?”

Mr Davies has long campaigned for prices to be slashed and supports the FairFuelUK campaign.

Treasury Minister, Danny Alexander, said: “The Treasury has published our own analysis on fuel duty reductions which also shows the economic benefits reductions can bring.”

Mr Davies said he will continue pushing for further action from Government.

Speaking after the exchange he added: “To be fair to George Osborne, he is the first Chancellor I can remember who actually cut fuel duty, and fuel duty is 12p a litre less than it would have been if he had continued with Labour's planned tax rises on fuel duty.

“However, I want to see further reductions for motorists.”