Retain fuel duty cut to keep the economy delivering, says Logistics UK

Thursday 29 February 2024

Chancellor Jeremy Hunt MP must retain the current 5p per litre cut in fuel duty to prevent additional inflationary pressures, according to business group Logistics UK.

Talking ahead of the Chancellor of the Exchequer’s Budget next week (6 March 2024), the organisation’s Chief Executive David Wells OBE 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. 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 place 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. We are urging the Chancellor to take this into account when making his final Budget calculations, for the good of the UK’s supply chain and the wider growth of the economy that our members can help to drive.”

The call to maintain the current fuel duty cut is one of a number of measures outlined by Logistics UK in its submission to the Treasury ahead of next week’s 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.  

Mr Wells continues: “Logistics as a sector delivers for the country’s day to day needs, as well as for the future. 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. In setting the Budget, we urge the Chancellor to maximise the benefits that our sector can provide, keeping the economy moving and ensuring that we are best placed to support all the UK’s businesses in achieving their potential.”

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.