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  • In Associations
  • | Editorial Team
  • | October 3, 2018

Fuel Duty Freeze A Relief But Presents A Missed Opportunity, Says FTA.

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FTA, the only business group representing all of logistics, is thrilled Theresa May has chosen to freeze fuel duty for the ninth year, a move which will greatly benefit the millions of logistics businesses driving the UK economy forward, but also expresses disappointment that rates were not reduced to provide a further boost to the nation’s growth.

Christopher Snelling , Head of UK Policy at FTA explains: “UK logistics operators already pay one of the highest rates of fuel duty in Europe, so we’re pleased the government has decided to continue the freeze for another year. With fuel prices continuing to skyrocket – the price of diesel has increased by 13% in the last year alone – logistics businesses are already tackling very challenging circumstances and a fuel duty rise would have constituted an unbearable burden. Many of our members operate large fleets of vehicles; an increase would have unfairly penalised the very industry which keeps Britain’s factories, retail outlets, schools, hospitals and homes stocked with the raw materials and goods they need to continue operating efficiently.”

While the freeze is great news, the government has missed an opportunity to further boost economic activity by cutting cut fuel duty. As Snelling continues: “A 10p per litre cut would increase economic activity of nearly 1% in just one year, creating over a quarter of a million jobs. And even just a 3p per litre cut in fuel duty would still generate increased economic activity that would generate tax income to almost offset the cut in fuel duty. The government would serve UK PLC better by cutting fuel duty to jump start spending and boost economic activity. We’ll continue campaigning for a reduction in rates and hope the government heeds our advice for the next budget.”

Efficient logistics is vital to keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc.  A champion and challenger, FTA speaks to Government with one voice on behalf of the whole sector, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers.

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