Home News Features Compliance

🕒 Article read time: 2 minutes

Logistics UK urges government not to increase fuel duty


With Chancellor Rachel Reeves undertaking a full review of public finances ahead of the autumn budget, Logistics UK is urging her to protect the current rate of fuel duty to ensure that the industry can play its part in driving economic recovery.

“Fuel is the largest single expense that logistics businesses have to bear,” says Logistics UK’s Policy Director Kevin Green, “and the current rate of fuel duty is enabling the industry to start planning for a decarbonised future.

“With the sector already operating on extremely narrow margins – often only 2.5% - increasing fuel duty would heap the cost pressure on operators. This would not leave enough spare cash for our industry to implement the necessary steps to take us into a net zero future without passing on the cost to the end customer, something our members are loath to do.

“With wage costs and the price of new vehicles rising, pressure on the logistics industry continues to mount, at a time when the sector is committed to helping kickstart economic recovery and growth.

“Rather than stifle the increased economic activity which our industry is able to drive, we need Ms Reeves to consider other alternatives to fill the fiscal gap.

“Increasing fuel tax would be a double whammy to millions of car drivers, paying more for their journeys, and more for everyday products, as the logistics industry would have little choice but pass its increased fuel costs on to consumers.

“Current industry estimates suggest that the weekly fuel bill for a 44 tonne diesel HGV is around £888, with £436 taken in fuel duty by HMRC.

“Nothing moves without logistics and our sector is a key driver for growth and productivity,” continues Green.

“We have a great opportunity to help kickstart the economy, but this opportunity will be stifled if logistics businesses cannot create profit to invest in the future of the sector. Our industry underpins every sector of the economy, and as such is ideally placed to help the government get growth moving, but this cannot happen if the sector is placed under such significant cost pressure.

“On behalf of our members, we urge Ms Reeves to protect the current rate of fuel duty and identify other areas within the budget which will not hamper the movement of goods which UK plc needs to trade and use in order to thrive.”

Published On: 15/08/2024 14:00:00

 

Comments Section

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

There are no comments yet.

News In Brief

Start up invents new technique for capturing CO2 from cargo ships and storing it in the ocean

Calcarea, a startup founded by Caltech chemical oceanographer Jess Adkins, has invented a new technique for reducing carbon emissions from international shipping by capturing and storing CO2 in the ocean.

It is hoped that the process could help the maritime sector meet its climate targets by converting CO2 emissions into stable ocean salts that can be stored for up to 100,000 years.

Calcarea’s technology mimics a natural process where seawater absorbs about a third of atmospheric CO2. In this process, CO2 reacts with calcium carbonate to form bicarbonate, effectively locking away the carbon.

While this natural reaction typically takes over 10,000 years, Calcarea’s reactor speeds it up to about a minute. The reactor combines ship exhaust with seawater and limestone, a calcium carbonate-rich rock, to facilitate this rapid transformation.

International shipping is responsible for about 80% of global trade and contributes around 3% of total carbon emissions.

Latest articles

Ask the MAC

With Ray Marshall, Manager - Compliance Information, Logistics UK.

Read time: 2 minutes

View article

Generation Logistics Case Study

Stacey Nickless, Customer Service and Export Manager, Buffaload.

Read time: 2 minutes

View article

Happy birthday, to ya! Evri turns 50

Leeds-based Evri, the UK’s biggest dedicated parcel delivery company, celebrated its 50th year of courier deliveries on 1 August, Yorkshire Day.

Read time: 2 minutes

View article

E-news archive

You can also view our e-news archive here.

E-news archive

Interested in Membership?

Get in contact using the Membership Enquiry Form.

Membership Enquiry Form

Logistics Magazine Portal

The hub for finding relevant and informative features, news & compliance guides from Logistics Magazine

Logistics Magazine Portal Home

Sponsorship Opportunities

Learn more about advertising on the new digital Logistics Magazine, with a variety of advert options to reach 30,000 relevant readers.

Sponsorship Opportunities

Magazine Contents

News

Logistics Magazine will cover all the latest news on stories breaking in the industry, including developments on COVID-19,  Brexit, Clean Air Zones, transport law and decarbonisation.

News

Features

Our frequent features will tackle the broader issues affecting logistics such as the COVID-19 vaccination programme, technology and innovation, the political and economic landscape, global trade and the drive to reduce emissions across all transport modes.

Features

Compliance

Each month we explore a different topic in depth in our popular Compliance section, while each week we will publish answers put to our Member Advice Centre team.

Compliance

View Supplements and Previous Printed Editions

View Supplements and previous printed editions of Logistics Magazine here.

Previous