Raising fuel duty will damage the economy
18 Oct 2024
Posted By Richard Smith
Speculation is rife today across the media that the Chancellor is set to raise fuel duty by 7p a litre. It's also being reported by LBC that "she is also said to be considering restoring an annual fuel duty rise."
As I said yesterday, and as outlined in the recent CEBR 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.
As we've been spotlighting in the media and online all week, raising fuel duty will be bad for growth and will ultimately damage the economy. Our recent analysis shows that a 5p increase could slash £430 million from Britain’s national income each year for the next five years.
Our sector is an economic enabler which the nation relies upon daily. We're a key driver for growth and we want to work with Government to deliver their stated mission of driving forward that growth.
We again urge the Chancellor and the Government to maintain the fuel duty freeze . Every effort should be made to help an industry which is critical to the supply-chain and the economy.