Autumn Statement: could have done much better 03 December 2014

Chancellor Gorge Osborne's announcement in today's (3 December 2014) Autumn Statement that fuel duty will again be frozen has been welcomed by the transport and logistics industry, but his failure to cut it by 3p per litre is seen universally as a missed opportunity.

Quentin Willson, of the FairFuelUK Campaign: "FairFuelUK welcomes the continual freeze in fuel duty but his tax take is now approaching 70%. He could have done more. He knows, along with the IMF, that cutting fuel prices is good for GDP, jobs and Inflation.

"He also did not call for an oil price enquiry to investigate why recent massive falls in oil prices have not been reflected at the pumps. Marks out of 10: six."

RHA chief executive Richard Burnett: "Diesel represents more than a third of a haulier's costs and UK fuel duty is the highest in the EU. Because of this, our European counterparts are operating at an unfair advantage. A 3p per litre duty [cut] would have gone some way to levelling the playing field ... and would have represented a 3—4% reduction in costs to the haulier.

"Today's freeze means that, as a result of today's low oil price, fuel duty now accounts for nearly 70% of the price of a litre of fuel... [It] will, for many, be seen as little more than a delaying tactic... The RHA, together with its campaign alliance partners FairFuelUK, will continue to push for a fuel duty cut.

"We [also] face a serious and worsening shortage of lorry drivers, which is already holding back growth, and significant government funding is needed to reverse that. This is fast becoming the biggest issue that the road haulage industry has ever had to cope with.

"The opportunity was there to end the long trend of under-investment and wholesale reliance on bringing in drivers from Eastern Europe.

"We put forward a targeted solution to a real problem, with massive support from the industry. It is very disappointing that the government has turned a deaf ear."

Karen Dee, FTA's director of policy: "The chancellor should be congratulated for resisting the temptation to raise some additional revenue [from fuel duty] at the expense of the freight industry and other road users. We are, however, disappointed that the he did not go further and cut fuel duties. Independent research has demonstrated that this could deliver a further boost to the UK economy and we will continue our efforts to persuade government to take action.

"The logistics industry is also suffering a chronic shortage of drivers, which is adding further pressure at the busiest time of year. But this problem will extend beyond Christmas and it is essential that government works with the industry to encourage skills development and to identify innovative ways to incentivise the uptake of vocational training."

Author
Brian Tinham

Related Companies
Road Haulage Association Ltd

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