London, UK: A rise in fuel duty, speculated to be part of the upcoming budget, will damage the economy and not help the UK’s transition to a low-emission economy, the Freight Transport Association says.
Christopher Snelling, head of UK policy, FTA, said: “Ahead of the Budget, FTA is urging government to listen to the concerns of the industry which is the lifeblood of business and manufacturing; a rise in fuel duty would damage the UK economy and must be avoided.
“Rising fuel costs are already threatening the UK’s future business prospects, and as we enter into the post-Brexit period, and with many businesses already facing challenging economic conditions, any tax increase would stoke inflation, add to business costs and threaten the livelihoods of small businesses working with HGVs and vans.
“This year, small businesses will be forced to upgrade their fleets early to meet the government’s Clean Air Zone requirements, at their own cost. To penalise them at the same time via a fuel duty increase would be deeply unfair, and unsustainable for many businesses.”
“Such an increase will not help the environment as the alternatives to diesel that we need are not ready – the government has still not set the definition of an Ultra-Low Emission Truck – and the electricity supply needed for mass use of zero emission vans is not in place. Making the operation of diesel trucks more expensive would not push people to change, as there is no direct substitute,” Snalling said.
Other issues raised in FTA’s submission included the need to: reduce the cost of rail freight to maximise its role; continue investment in transport infrastructure for all modes; and to reform the Apprenticeship Levy into a Skills Levy to enable industry to train workers to fill all the types of roles that will be left vacant by the government’s new migration policy.
