A freeze on fuel duty and an essential user rebate for haulage operators must be announced in next month’s Budget, according to the RHA.
It said the last thing hauliers needed right now was for the current freeze on fuel duty to be reversed and that by introducing a rebate for CV operators, the government would reduce the competitive disadvantage that was holding hauliers back.
The trade association submitted its recommendations ahead of the Budget that also included an extension of full expensing to leased assets, making HGV skills bootcamps permanent and continuing the freeze on VED for HGVs as well as the HGV levy.
It also wants the government to ensure the national wealth fund created opportunities for investment in zero emission vehicles and safeguard the £8bn of Network North road maintenance funding over the next three years.
The RHA warned that a 5p rise in fuel duty would cut GDP after five years by £430m a year and would make more than 5,000 workers unemployed, as well as raising CPI by 0.2%.
It added that any introduction of a fuel duty rebate should be linked to emissions reduction.
“Our sector is a key economic enabler and is central to the government’s mission to deliver economic growth,” said Richard Smith, RHA MD.
“With cost pressures rising, increasing regulatory pressures and with growing numbers of insolvencies, these are difficult times for many operators.
“We need the government to minimise the burden on businesses to ensure the road transport sector is there to deliver for the rest of the economy.
“Fuel prices continue to put a massive strain on budgets with diesel excise duty in the UK higher than anywhere else in Europe.”
Earlier this week, fellow industry business group Logistics UK warned that any increase in costs for the transport and logistics industry would apply the handbrake to economic growth while driving up the price of everyday goods.
The Budget is on 30 October.
