The Chancellor must retain the current 5p per litre cut in fuel duty to prevent additional inflationary pressures, according to business group Logistics UK.
Chief executive David Wells urged Jeremy Hunt to maintain the existing cut in fuel duty in next week’s Budget as he warned of the impact of any changes on the sector and across 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.”
Logistics UK has also set out other measures that it says are priority areas for unlocking growth in the economy. These 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.
Wells continued: “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 £163bn 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.”
