RHA managing director Richard Smith has called for targeted fuel duty support for truck, van and coach operators, warning that rising costs are threatening supply chains and driving inflation across the economy.

Richard-Smith

Eighty per cent of all goods and materials and ninety-eight per cent of food moving across Britain travel by road. Every shop that opens its doors, every hospital that receives its supplies, every building site that breaks ground depends on our sector. Road transport is not a peripheral concern. Our sector is crucial to the economy, and the everyday lives of people, communities and businesses across this nation.

As a result of global events, fuel costs for businesses have risen by over 40%. Operators are already working on tight margins, running essential services that cannot simply be switched off. Many cannot absorb what they are being asked to absorb. Where costs cannot be swallowed, they are passed on through the supply chain, meaning higher prices for households and more inflationary pressure on an economy that can ill afford it.

We’re calling for an Essential User Rebate for commercial vehicles. Targeted support - allowing truck, van and coach operators to reclaim fuel duty. This common sense measure would immediately reduce fuel costs. Our second ask is equally straightforward: Scrap planned future fuel duty hikes. Any further fuel duty increase would be the wrong signal at the worst possible time. It would be a hammer blow to businesses and the supply chains the economy depends on.

Other countries have taken action to support key sectors. In addition to fuel duty cuts, the Republic of Ireland has introduced a specific rebate scheme for hauliers. Spain operates an established fuel rebate for commercial vehicles. Portugal and Italy have cut fuel taxes in direct response to the current crisis. These governments have acted.

Taken together, fuel duty and VAT already account for over half of what is paid for fuel in this country. The tools are there for the UK government to act. The current situation is unsustainable. The Prime Minister has said he is keeping support under review. With respect, we have moved far beyond the review stage. Our essential industry needs action now. Our message is clear: Back essential users of fuel with targeted support and scrap planned fuel duty hikes.

Richard Smith, MD, RHA

 

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