Logistics UK reacts to claims government is planning fuel duty hike in October budget

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

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