Mandatory Credit: Photo by Jonathan Hordle / Rex Features ( 1178246e ) George Osbourne, shadow Chancellor 2010 General Election, Britain - 07 May 2010 Members of the Conservative Party arrive at Election HQ in London

George Osborne, chancellor

The industry has welcomed the chancellor’s decision to cancel the planned September fuel duty rise, but says more still needs to be done to get the economy on the road to recovery.

The RHA, FTA and FairFuelUK welcomed the duty freeze, but were disappointed that George Osborne did not cut fuel duty.

FTA MD of policy and communications James Hookham said: “While we are relieved that the immediate danger has passed, in order to get the UK back on the road to economic recovery it is vital that we have a cut in fuel duty and a long-term strategy to prevent future rises and uncertainty.”

RHA chief executive Geoff Dunning said that operators are still paying the highest price for diesel in Europe at 115.14ppl, excluding VAT.

Dunning said: “Customers have to accept that their haulage charges must rise if they are to continue to receive the services upon which they depend.”

The British Vehicle Renting and Leasing Association (BVRLA) said that the cancellation of the September duty increase was “a no-brainer”.

BVRLA Chief executive John Lewis said: “With the economy flirting with recession and household incomes still falling in relation to inflation, the government just cannot afford to price businesses and households off the road.”

Lancashire-based courier firm Same Day Delivery also welcomed the chancellor’s decision, claiming that 6.5ppl has been added to its fuel bill since January.

Owner Tracey Hoather said: “While we welcome the news September’s planned increase has been shelved, we’re still very much out of pocket, just less so.

“The real issue is that fuel prices are still far too high and as a delivery business we just can’t avoid it as a cost, and there are many small businesses in the same boat as us.”