Logistics UK welcomes government’s delay of fuel duty rise

“The Prime Minister and Chancellor’s action on fuel duty and road tax shows the government has listened to our industry’s concerns at a time when logistics businesses are finding it increasingly hard to reconcile ever-increasing cost pressures,” says chief executive Ben Fletcher. “The cost of filling up a large HGV has risen by 31% in the past three months, to around £1,000 a tank, and this increase cannot be absorbed by an industry operating on incredibly narrow margins.

“Deferring the rise in fuel duty to the end of the year will save the sector an estimated £34.5 million, while a typically sized business operating a fleet of six 44-tonne articulated vehicles could save around £1,010. In addition, the introduction of a 12-month road tax holiday is expected to deliver a further £220 million in savings across the sector, equivalent to £5,472 for a similar sized fleet.

“These measures will be vital for helping businesses that are under acute pressure to plan ahead with greater confidence, as well as to limit the inflationary impacts for consumers, who rely on our sector every day.”

According to Logistics UK, the sharp rise in fuel prices since the start of the Middle East conflict has already benefitted the Treasury to the tune of £42 million in increased tax take. Ben Fletcher continues:

“The action announced today will be a lifeline to the businesses that keep all parts of the economy stocked with everything that the nation relies on every day. At such a tough time for trade, these decisions will be a welcome boost to our sector.”

“We will maintain our engagement across government to continue making the case for a wider package of support on low carbon fuels, electricity costs and business rates, as well as to keep the situation on fuel duty under review, to help the logistics sector to focus on investing for the future, and transition away from fossil fuels, while delivering for the wider economy for the long term.”