Budget priority – reduce fuel duty


As the Budget fast approaches, the Freight Transport Association (FTA) continues to press the case for a reduction in road fuel duty to ease the pressure on freight operators.
In its pre Budget submission to George Osborne, FTA argues that the chancellor’s priorities must be to:
• Ease cost pressure on domestic freight activity and stimulate economic growth through consumer demand by reducing road fuel duty by 3ppl with commensurate reductions in the duty rate for gas oil.
• Stimulate investment in low-carbon fuelled vehicles by fixing fuel duty rates for natural gas and biomethane relative to diesel rates for at least 10 years.
• Ensure that the introduction of the HGV Road User Levy will be tax neutral in practice by confirming: the rates of the levy that will apply; that Vehicle Excise Duty rates will not be subject to increase simply to allow that neutrality to be achieved; and that holders of Reduced Pollution Certificates will be compensated by replacement grants.