Fuel duty rise would be huge blow to sector's recovery, warns Logistics UK

Logistics UK has called on the government to scrap plans to ramp up fuel duty to help pay for the Covid-19 crisis.

Media reports have claimed chancellor Rishi Sunak is considering raising duty by 5p per litre in his autumn budget, ending a 10-year tax freeze.

However, Logistics UK director of policy, Elizabeth de Jong, said the association was "extremely concerned" by the rumours.

"Logistics businesses have worked tirelessly during the pandemic to ensure the nation is supplied with all the goods and services it needs, all while operating at very tight margins and facing severe economic difficulties; a fuel duty rise would be a huge blow to their recovery," she said.

“The 5p per litre rise – as is speculated in the media – would increase operating costs significantly at a time when margins are most stretched and cash flow is a real problem for many businesses; the UK already pays one of the highest fuel duty rates in Europe. Logistics UK is calling for a freeze on diesel and petrol fuel duty, in addition to a reduction in fuel duty for cleaner, lower carbon fuels to support the transition to a zero-emission industry.”