The road haulage industry has responded positively to media reports that fuel duty will be frozen when Chancellor John Healey delivers the Budget tomorrow (28 October), writes Peter Brown.
The reports suggest that the Treasury will maintain both the existing freeze and the temporary 5p-per-litre discount.
Ben Fletcher, Logistics UK chief executive, said the reports would raise the hopes of beleaguered fleet operators.
“Logistics businesses across the UK will be hoping that today’s media reports about the continued freeze in fuel duty prove to be accurate,” he said.
“Retaining the current 5p-per-litre cut in tomorrow’s Budget would be a pragmatic measure that keeps trade moving, supports growth in every postcode and avoids adding further inflationary pressures at a time of rising costs for consumers and businesses.
“We believe the case for maintaining the current fuel duty rate is clear as businesses continue to face significant cost pressures and economic uncertainty.”
Richard Smith, RHA chief executive, said a fuel duty hike would mean higher food prices.
“Everything on a supermarket shelf got there on a lorry or van, so when it costs more to move it, it costs more for us all to buy it,” he said.
“Wednesday is the last opportunity for the Chancellor to change course. He can’t control the price of fuel, but he can control what the Treasury adds to it.
“Give households and motorists some relief. Scrap the planned fuel duty rises and, crucially, give lorry, van and coach firms a rebate of 15p a litre.
“We call on Chancellor Healey to back the businesses that keep Britain moving.”
Fuel prices have surged in the UK, largely driven by the war in Iran. According to RAC data, the average price of a litre of diesel at UK filling stations recently breached the £2 mark for the first time.
The 5p-per-litre discount, originally introduced in 2022, was scheduled to be phased out, with operators bracing for a 3p-per-litre duty increase on 1 January 2027, followed by a further 2p increase in March.
Reversing the 5p cut could add around £3.30, including VAT, to the cost of filling a standard 55-litre tank, hitting fleet operators hard.
