The the Chancellor Rachel Reeves undertaking a full examination of the public’s finances in advance of the budget for autumn Business group Logistics UK is urging her to preserve the rate at which fuel is currently charged duty so that the sector will be able to contribute to boost economic recovery.
“Fuel is the biggest single cost logistics companies are required to pay for,” says Logistics UK’s Policy Director Kevin Green, “and the currently prevailing rate of fuel duty allows the sector to plan towards a future that is decarbonised. The sector is having a very small margin which are often just 2.5 percent – increasing the taxation on fuel would put costs on companies. There would be no money to make the required changes that will lead us to an Net Zero future without passing costs onto customers who are the majority of our industry members would rather not take on.
“With cost of wages and prices of vehicles on the market as well, the burden on the industry of logistics is increasing, and this comes while this sector is dedicated to helping boost growth and economic recovery. Instead of limiting the growth in economy that our sector can drive and boost, we must ask Ms Reeves to look at other solutions to bridge the gap in fiscal resources.
“Increasing taxes on gasoline would cause both a blow to the millions of motorists who would be paying higher prices for their travels and items that are used every day, since logistical companies not have a choice other than to transfer its higher fuel prices directly to the customers.”
According to current estimates, the cost of fuel for the diesel HGV of 44 tons amounts to around PS888. This includes the PS436 being absorbed as fuel duty by HMRC.
“Nothing can move without logistics, which is why this sector is a major to productivity and growth,” continues Green. “We stand a chance to assist in boosting the economy, however this chance can be blocked if logistic firms are unable to make profits and make investments in the future of their industry. The logistics industry is at the heart of all sectors of the economy and is therefore perfectly in a position to assist government in accelerating growth and accelerate the pace of growth, however this won’t happen in the event that it is put with such severe costs. As a representative of our fellow members, we call on Ms Reeves to preserve the current rates of tax on fuel and also identify other aspects of the budget that won’t hinder the flow of the goods UK PLC needs to trade and make use of to flourish.”
Source: logistics.org.uk