Budget '24: Fuel duty freeze confirmed

The Chancellor Jeremy Hunt MP’s announcement on fuel duty in this week’s (6 March 2024) Budget, has been met with positive reaction from Logistics UK.

“The extension to the 5 pence per litre cut in fuel duty announced by the Chancellor in today’s Budget is good news for the logistics sector at a time when the industry is facing increasing cost pressures from rising wage and fuel costs," said Kevin Green, Director of Policy at the business group.

“Logistics powers every part of the economy, and an increase in operating costs at this time caused by the reversal of the fuel duty cut could have caused disastrous inflationary pressure on the economy. Maintaining the fuel duty cut will provide logistics businesses with more certainty as they drive the transition to a greener economy.”

Logistic UK’s Chief Executive David Wells OBE had urged Mr Hunt to maintain the existing cut in fuel duty to protect the sector responsible for delivering all the UK’s goods and prevent additional inflationary pressure from being generated throughout the economy.

“For the majority of logistics operators, which work to incredibly narrow margins, diesel represents a significant portion of their operating costs,” said Mr Wells.

“Removing the current fuel duty cut, at a time when logistics businesses face a wide range of economic pressures from rising wage bills to the cost of investing in the green transition, would have placed a huge additional burden on our sector and the wider economy.

“Logistics as a sector is committed to switching to greener vehicles and methods of delivery, but this cannot be achieved without creating some financial certainty for future planning.”

The call to maintain the current fuel duty cut was one of a number of measures outlined by Logistics UK in its submission to the Treasury ahead of the Budget.

Logistics UK has set out four priority areas for unlocking growth in the economy, which include the development of innovative and integrated infrastructure, creation of a skills partnership to support a thriving sector, backing for trade as a driver of innovation and productivity, and assistance to enable the logistics industry to transition fairly to a green economy.  

“Logistics as a sector delivers for the country’s day-to-day needs, as well as for the future,” continues Mr Wells.

“Our members deliver smart, green, resilient growth and a wealth of jobs, contributing more than £163 billion to the economy every year.

“It is vital that our industry is given the tools to enable it to play its part in assisting in the future prosperity of the UK’s economy.”

www.logistics.org.uk/campaigns    

Published On: 07/03/2024 16:00:00

Comments Section

If you are a Logistics UK member login to add comments.