Fuel duty remains frozen

Friday 17 January 2025

The new Chancellor of the Exchequer, in her first Budget, froze fuel duty for a further 12 months to March 2026 and also announced she is maintaining the 5 pence per litre cut. Logistics UK had been campaigning for this at a time when the industry is facing increasing cost pressures from rising wage and fuel costs. Maintaining the fuel duty cut provides logistics businesses with more certainty as they drive the transition to a greener economy.
 
However, it was overall, a challenging Budget for logistics businesses, particularly due to the increase in employer National Insurance Contributions (NIC) which we estimate will cost the wider sector £1.7 billion a year.