🕒 Article read time: 2 minutes
Logistics UK reacts to claims government is planning fuel duty hike in October budget
Prime Minister Keir Starmer refused to rule out an end to the current fuel duty freeze when questioned by journalists during a whistlestop tour of Germany yesterday raising concerns that the logistics sector could see the cost of a litre of diesel increase by 5p.
Starmer's comment comes after he warned that the state of the UK’s economy was “worse than we ever imagined”, accusing the Conservatives of leaving a £22bn black hole.
Logistics UK has urged Chancellor Rachel Reeves to keep fuel duty at its current rate to enable the industry to play its part in driving economic recovery. The association estimates the weekly fuel bill for a 44-tonne diesel HGV is currently around £888, with £436 taken in fuel duty by HMRC.
Logistics UK Policy Director Kevin Green, said: “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 the Chancellor to consider other alternatives to fill the fiscal gap.”
Published On: 29/08/2024 14:00:00
Comments Section
If you are a Logistics UK member login to add comments.
News In Brief
Cutting edge technology to strengthen UK supply-chain resilience
The Made Smarter Innovation Digital Supply Chain Hub programme aims to apply deep tech solutions to bolster the resilience of national supply chains.
Several technology businesses will will receive funding of up to £150,000 to address one of three supply-chain challenges in cybersecurity, carbon management and data governance, with a view to strengthening UK industry.
The new initiative will build on the Digital Supply Chain Hub, a programme designed to make UK supply chains more efficient, resilient and sustainable, which has reportedly enabled more than 40 startups and SMEs to secure more than £3 million in funding.
The participating companies, which include Orpheus Cyber and Farm Carbon Toolkit, will accelerate the practical application of deep tech in response to demand from industry, and concerns around future supply-chain disruptions such as cyberattacks, outages and regulatory hurdles.
Latest articles
Working for our members – by Natalie Chapman, Head of Public Affairs
The first half of 2025 has flown by, and we have been busy continuing to spread the message that logistics underpins the economy and is fundamental to growth. A huge focus of ours this year is around the forthcoming Industrial, Trade and Infrastructure Strategies, making sure logistics is recognised within these as foundational to driving growth across the whole economy. Â
Read time: 3 minutes
View article
Campaign highlight: Government introduces Sustainable Aviation Fuel Bill to Parliament
Logistics UK has been calling for support from government on the production of low carbon fuels, including sustainable aviation fuel (SAF), to help decarbonise. With SAF able to reduce aviation emissions by up to 70% and able to be blended into fossil based aviation fuel and used in existing aircraft and infrastructure without modification, it is key to reducing emissions.Â
Read time: 2 minutes
View article
Generation Logistics Case Study
Aline Almeida, Customer Success Manager – Maersk.
Read time: 2 minutes
View article
