Chancellor’s Fuel Duty Increase Condemned By Logistics Industry

The Freight Transport Association (FTA) has condemned the Chancellor’s failure to abandon the fuel duty increase. Simon Chapman, the FTA’s chief Economist said: “The Chancellor has squandered a very real opportunity to support UK jobs industry and economic recovery, by his Budget policy on fuel duty.” The FTA believes that the Chancellor of the Exchequer’s failures to cut fuel duty rates has condemned the UK to suffer the consequences of even higher fuel bills and operational costs. This comes at a time when the world price of oil has hit a four year high and a real chance that prices will face further rises in the coming months. The FTA is shocked that the Chancellor has chosen not to cut or freeze fuel duty but is going ahead with plans for a 3ppl increase in August. The FTA has asked Mr Osborne for the sake of the UK industry and consumers, to reconsider his decision before the proposed increase comes into effect. Research shows that a cut in diesel duty of 2.5ppl could have created an additional 175,000 jobs with no loss of revenue to the Exchequer. In stark contrast the proposed 3ppl fuel duty increase scheduled for August will increase the average cost of truck operation by about £1,200 per vehicle per year, on top of expected price rises due to an anticipated increase in the world price of oil. Mr Chapman went on to say: “Mr Osborne has lost an opportunity to benefit every household in the UK and he must be persuaded to change his policy. The FTA cannot accept this situation and will join with colleagues in the FairFuelUK Campaign with the intention of reversing this decision.” On a more positive note, FTA has welcomed the announcement that Vehicle Excise Duty levels for commercial vehicles will be frozen.