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Logistics UK has written to the Chancellor of the Exchequer urging him to cut fuel duty in next week’s budget, in order to provide hauliers with financial stability while they transition to cleaner alternatives.

Chancellor Jeremy Hunt is expected to announce tax rises and spending cuts totalling up to £60 billion on 17 November as he aims to address the black hole in the public finances.

But Logistics UK said he should introduce a “dynamic taxation model”, which reduces fuel duty while maintaining revenue levels through VAT and other sources and would ensure the government kept control of the public purse.

Its chief executive David Wells said the budget was an opportunity for the Chancellor to ease uncertainty for haulage firms moving goods around the country.

In his letter to Hunt, Wells highlighted the financial challenges for hauliers currently relying on fossil fuels but looking to invest in zero-emission technologies: “Long term planning certainty will be critical to ensuring cost effective investment for our sector to ensure our member businesses can undertake the correct equipment renewal cycle without excessive financial penalties,” he said.

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“New vehicles do not come cheap, and the alternative fuels they require need to be cost efficient as well as widely available.

“Incentivisation of the transition to zero carbon is critical, with many member businesses currently facing excessive costs – sometimes of over £1 million to install charging infrastructure on site.”

Its call came after the RHA said a fuel duty rebate for HGVs of at least 15ppl was required to bring down prices.

Richard Smith, RHA MD, said: “We’re ready to work with the government on a number of solutions which could reap economic benefits and help ease the cost of living crisis.

“A fuel duty rebate for transport firms - similar to schemes abroad - would reduce cost and make the UK more competitive.”

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