Trade groups welcome fuel duty freeze

By Categories: NewsPublished On: Sunday 27 November 2016

fuelsotpThe industry’s major trade associations have welcomed a Treasury decision to implement a seventh consecutive annual fuel duty freeze, announced as part of the recent Autumn statement, following reports earlier in the year that the government was considering raising the levy.

The Road Haulage Association (RHA) congratulated the new chancellor Philip Hammond on his first statement, saying it was pleased that he had recognised the part hauliers play in keeping the economy on the move.

“The news that insurance premium tax is to rise by two per cent comes as a disappointment – a disappointment that will, to an extent, be offset by the news that fuel duty, held at 57.95ppl, is to be frozen for the seventh year in a row,” said RHA chief executive Richard Burnett.

“Obviously a fuel duty cut would have made a real difference to our members’ operating costs but a further fuel duty freeze? We’ll happily take that.”

He also welcomed news of an extra £1.3 billion to be spent on improving the road network.

“Roads are the haulier’s place of work,” he added. “Any measures to make their journey easier, more efficient and certainly more cost effective will contribute greatly to the movement of the UK economy and help ease the cost of congestion. This costs billions of pounds each year to millions of householders across the UK.”

The Freight Transport Association (FTA) said the fuel duty freeze “would help” but added that a cut would have “boosted Britain’s economy, by putting money in people’s pockets and reducing costs for transport operators”.

The association highlighted its consistent call for a 3p per litre cut in fuel duty, which it says would deliver around £1,500 in annual savings on the running cost of a 44-tonne vehicle – thereby assisting firms operating on tight margins and facing Brexit uncertainty.

“Naturally we are pleased with the chancellor’s decision not to increase fuel duty in line with inflation as previously planned,” said FTA deputy chief executive James Hookham.

“The freeze will save truck operators – the majority of which are small and medium businesses – about £9,000 a year for a typical ten-vehicle fleet.”

He continued: “The chancellor has understood the arguments made by the FairFuelUK campaign and fuel duty has moved from being a ‘sin tax’ like alcohol and tobacco duty to being recognised as a core burden on families and businesses who can be helped by freezing it.

“The chancellor needs to continue that logic and recognise that reducing tax duty in future will bring even greater benefit to the economy.”

Hookham added: “The increase spending on infrastructure is great news and we await the details of which specific road and rail schemes will go ahead in the next few days, but we are pleased that the East-West corridor investment between Oxford and Cambridge is going ahead. Another priority for FTA is the route of the approach roads to the new Lower Thames Crossing between Gravesend and Tilbury.

“More money for local infrastructure is welcome and we will be presenting our list of preferred schemes to local highway authorities and the devolved governments to prioritise those that most benefit freight movements.”