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Autumn Statement 2014: 'a fuel duty freeze does not go far enough,' says RHA

The organisation believes that a cut of at least 3 pence per litre is desperately needed to maintain the viability of UK hauliers.

'Diesel represents more than a third of a haulier’s costs and UK fuel duty is the highest in the EU,' explained RHA chief executive, Richard Burnett.

'Because of this our European counterparts are operating at an unfair advantage. A 3 pence per litre duty would have gone some way to levelling the playing field between the UK and the rest of Europe and would have represented a 3-4% reduction in costs to the haulier, enabling them to be more competitive. Today’s freeze means that as a result of today’s low oil price, fuel duty now accounts for nearly 70% of the price of a litre of fuel.

'Another freeze will, for many, be seen as little more than a delaying tactic. UK hauliers have to watch every penny; they can’t afford not to. This is an industry where any increase in the price of fuel or the rate of fuel duty has to be passed on to the customer – ultimately increasing prices for business and consumers alike. And if customers won’t pay, there is a real threat to the survival of the business.

'Despite the optimism shown by the Chancellor’s in this, the final Autumn Statement of the present Government, the UK’s economic recovery remains vulnerable. The Road Haulage Association, together with its campaign alliance partners FairFuelUK, will continue to push for a fuel duty cut. RHA-commissioned research by NIESR shows that a cut in fuel duty is good for growth and will create jobs,' he added.

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