Give transport firms a 15p per litre fuel duty rebate in Budget, says RHA

London, UK: The RHA has called on Chancellor Jeremy Hunt to introduce a minimum 15 pence per litre fuel duty rebate for transport operators in its submission to the Treasury, ahead of the Budget on 15 March.

“We’ve seen operating costs for our members increase by 20% & fuel prices by 40%. It’s unsustainable,” the RHA says.

Days earlier Logistics UK called on the government to retain the 5-pence a litre fuel duty cut introduced in March 2022. The business group warns of the dangers of a disproportionate rise in fuel duty to inflation and the UK economy.

The RHA also urges the Chancellor to:

  • commit to no increase in fuel duty for diesel for a further two years
  • continue the freeze on vehicle excise duty to further ease costs for haulage businesses
  • reform the Apprenticeship Levy to provide greater flexibility for skills training, and ensure there is clear direction and timetables for the allocation of funding
  • confirm funding for additional places on HGV skills bootcamps
  • extend the National Skills Fund to include all training levels
  • provide increased funding for safe and secure lorry parking
  • replace the HGV levy with an alternative scheme that ensures overseas operators coming to the UK contribute to the upkeep of vital road infrastructure

At the same time business group the CBI has asked the government to “take long overdue action to tackle acute labour and skills shortages” – including measures that support more individuals to remain in the labour market, return and to progress in their careers. This includes reform in childcare, expanding the health support that firms can offer employees, and reforming the Apprenticeship Levy with a two-year pilot scheme.

It also wants the government to drive lasting productivity growth by unlocking business investment through the tax system – replacing the super-deduction, either by introducing full expensing for capital investment, or setting out a roadmap towards doing so – introducing 50% from this April as the first step.

Thirdly, the CBI would like the government to “unleash green markets and energy resilience, supporting firms to be more energy efficient as they prepare for next winter, and ensuring the UK can grow its energy security and compete in the race for new green markets and technologies”.