Budget 2014: fuel duty frozen despite industry calls for a cut

Fuel duty will be frozen for the next 12 months,  revealed Chancellor George Osborne in today’s Budget 2014, despite industry calls for a much-needed reduction.

The decision to not increase fuel duty backs up the chancellor’s pledge at last September’s Conservative Party Conference to keep the tax static for the remainder of this parliament “provided we can find the savings to pay for it”. This was confirmed in last year's Autumn Statement.

However, despite vigorous industry lobbying led by FairFuel UK (FFUK), the government has ignored pleas to cut the level of fuel duty as a way to stimulate the economy.

A letter delivered to 10 Downing Street earlier this month by FFUK and its campaign supporters the FTA, RHA, UKLPG and APN, alongside a cross-party group of MPs, referenced a ComRes Poll of 2,032 adults and revealed:

• Two-thirds (69%) of respondents would like to see the government reduce the level of fuel duty in the next budget by at least 1p;
• Three in five (59%) would like a reduction of at least 3p;
• While a third (31%) want a reduction of 10p.

RHA chief executive Geoff Dunning, who attended the event, said: “The Road Haulage Association acknowledges the fact that the UK rate of fuel duty, currently standing at 57.95ppl has been held down by the Coalition and also welcomes the decision that there should be no increase in fuel duty in this parliament.

“However, UK fuel duty is still by far the highest in the EU, impacting on UK firms’ competitiveness and cash flow and holding back the ability of hauliers to invest in equipment, vehicles and people.

“Surely the time has now come to finally end all speculation and come up with solution that will benefit Britain’s vital haulage industry while not putting the Treasury at a financial disadvantage?” said Dunning.

During its term in office, the Coalition government has kept the rate of fuel duty static, with the exception of a 1ppl cut in April 2011.