Budget 2022: Is a 5 ppl cut in fuel duty enough?

The Chancellor seems poised to cut fuel duty by up to 5ppl - but will today's Budget offer enough to struggling hauliers and coach operators?

Originally, the Chancellor wanted the Spring Statement to merely be an “economic update” – but the situation in Ukraine and the rapid rise in energy bills, and the rise in the cost of living as we exit the Covid pandemic, has resulted in an announcement being dubbed as a “mini-Budget”.

Logistics to benefit?

The move to reduce fuel duty, which has been widely trailed in the national press and broadcast news, will help consumers and businesses – but does it go far enough in helping hauliers and coach operators?

Speaking to the Independent, Head of Communications at the RHA, Kate Gibbs, said fuel accounts for a third of haulage businesses’ costs and the average 44-tonne lorry achieves about 8 miles to the gallon, meaning that any increase in diesel and petrol has a significant impact on the bottom line.

She said: “It’s going to be a real real struggle with pump prices at the highest I can ever remember. It really is a massive outlay and the more the price goes up the more the price has to be passed on down. You and I are the ones that end up paying at supermarkets.”

It is reported that there has been scope for a duty cut “by a few pence” – but despite this, pump prices are still expected to continue to remain at record levels as well.

RHA calls

In order to assist hauliers and coach operators, we are also calling for a delay in the ban of red diesel by 12 months, due to come into force at the beginning of April, and also an essential user rebate of 15ppl to get hauliers and coaches motoring.

Additionally, we are lobbying for other measures in core parts of the industry, including skills and infrastructure.

The policies fold into our new campaigns, including #RHASkills and #RHAFacilities, which have recently been launched.

Address the acute labour shortages by allowing greater flexibility with the Apprenticeship Levy, allowing businesses to buy training modules with their levy funds.

Continue HGV skills bootcamps, maintaining funding to this training scheme as an alternative to apprenticeships.

Maintain and extend commitments to long-term investment in the road system – on the strategic road network, the major road network, and other major local roads.

Provide increased funding for lorry parking facilities to plug the acute shortage

Additionally, you can sign our petition to improve driver facilities here.