Today’s announcement by the Prime Minister and Chancellor that the phased increase in fuel duty of 5p per litre, planned from September is to be postponed has been praised by business group Logistics UK as a pragmatic measure that will protect the sector which supports every part of the economy.
“The Prime Minister and Chancellor’s action on fuel duty and road tax shows the government has listened to our industry’s concerns at a time when logistics businesses are finding it increasingly hard to reconcile ever-increasing cost pressures,” says Chief Executive Ben Fletcher. “The cost of filling up a large HGV has risen by 31% in the past three months, to around £1,000 a tank, and this cannot be absorbed by an industry operating on incredibly narrow margins.
“Deferring the rise in fuel duty to the end of the year, and introducing a 12-month road tax holiday, will be vital for helping businesses that are under acute pressure to plan ahead with greater confidence, as well as to limit the inflationary impacts for consumers, who rely on our sector every day.”
According to Logistics UK, the sharp rise in fuel prices since the start of the Middle East conflict has already benefitted the Treasury to the tune of £42 million in increased tax take. Ben Fletcher continues:
“The action announced today will be a lifeline to the businesses that keep all parts of the economy stocked with everything that the nation relies on every day. At such a tough time for trade, these decisions will be a welcome boost to our sector.”
“We will maintain our engagement across government to continue making the case for a wider package of support on low carbon fuels, electricity costs and business rates, as well as to keep the situation on fuel duty under review, to help the logistics sector to focus on investing for the future, and transition away from fossil fuels, while delivering for the wider economy for the long term.”
Logistics UK is one of the UK’s biggest 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, 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, water 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. For more information about the organisation and its work, please visit logistics.org.uk
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