Peterborough, UK: The Road Haulage Association is calling on the government to defer the withdrawal of the red diesel rebate by one year from April 1 – and take a phased approach to introducing it.
The RHA, which stresses that the withdrawal of the red diesel rebate will cost small hauliers and businesses £1.4bn, says: “We are making the move due to the crippling cost pressures that hauliers are experiencing as we emerge from the pandemic and one year on from the UK’s departure from the EU.”
Rod McKenzie, director of policy and public affairs at the RHA, said: “UK hauliers have done a heroic job in keeping the economy running during the Covid crisis.
“Punishing them with a red diesel hike tax is damaging to their business and we urgently call on the government to reconsider this move.”
“Small hauliers operating on thin margins simply cannot cope with the added pressure of the loss of the red-diesel rebated fuel in April which would add over 1% in running costs for a lorry,” says the RHA.
With shortages of drivers, vehicles and parts combined with increasing wage, fuel, and energy costs, now is not the time to pile on extra costs on small businesses and put our economic recovery at risk, argues the RHA.
The costs of operating a 44-tonne truck have increased by nearly 17% in the past year. As the global oil price and demand for fuels increases, the UK has near record diesel prices, compounded by an 18% increase in driver wages, adds the RHA.
“Despite severe financial challenges, hauliers across the country have remained focused on delivering a resilient supply chain. Government must now support them as they grapple with rising energy prices and high inflation.”
