APPG hears from Freightlink Europe, Knights of Old Group, RHA and Logistics UK on fuel duty

Amid growing industry and public concern around fuel duty, the APPG is carrying out an inquiry on fuel duty to consider what further measures Government may need to consider in order to support this vital industry. The APPG was keen to hear from as many key stakeholders as possible as spiralling fuel costs are impacting the entire industry. The APPG conducted the first of two oral evidence sessions on the 16th May 2022 with key stakeholders to discuss the current fuel crisis in the UK.

Representatives of the RHA, Logistics UK and two independent hauliers, Freightlink Europe and Knights of Old Group appeared before Chair Greg Smith MP and the APPG to highlight their concerns around rising fuel prices and the impact on UK haulage businesses. The two independent hauliers outlined how financial pressures will perpetuate to wider crisis and mean that some haulage businesses, especially smaller ones, may not survive.

The session also focussed on the Chancellor’s recent introduction of a 5p fuel duty reduction during the spring budget statement. Haulage operators stated while the industry was very grateful for fuel duty reduction as a gesture, sadly it had little to no impact as the price of wholesale fuel went up 7p the day before the rebate. Representatives of the RHA in attendance recommended the need for an essential user rebate, to cover haulage and coach drivers, which would be a potential solution to the rising costs. They suggested a rebate of around 15ppl as a helpful starting point to help get the industry back on its feet.

The APPG is thankful to industry for their support and expertise in this inquiry. This session will form part of the APPG’s inquiry into the impact of fuel duty on road freight and logistics businesses, as rising fuel prices and inflation continue to place huge financial pressures on UK businesses.