The current fuel duty freeze needs to remain the same or more operators will not survive the rising costs, according to the RHA.
Ahead of the 30 October Budget and amid speculation that the Chancellor is poised to raise fuel duty by 7ppl, writes Chris Tindall, and the trade association urged the government to reconsider any moves to reverse the freeze on duty that has been in place for 14 years.
Richard Smith, RHA MD, said: “As outlined in the recent centre for economics and business research report, diesel prices here are already higher than in any EU member state.
“In fact, the cost of fuel accounts for 31-36% of all running costs for many businesses in the road transport sector, be that HGVs, LGVS or coaches.
“We’re clear that at a time when operating costs are higher and profit margins are lower – with record numbers of insolvencies, many business simply wouldn’t be able to sustain such additional expense.
“Firms are under pressure as it is and such a rise in fuel duty would be catastrophic for many, in particular Britain’s SMEs.”
