The cost of filling a large HGV has risen sharply in recent months, according to Logistics UK
Logistics businesses have welcomed the government’s decision to delay a planned fuel duty rise, describing the move as a major boost for firms already struggling with soaring operating costs.
The Prime Minister and Chancellor confirmed that the phased 5p per litre increase in fuel duty, which had been due to begin in September, will now be postponed until the end of the year.
The government has also announced a 12-month road tax holiday aimed at easing pressure on the transport sector.
Business group Logistics UK said the measures would provide vital breathing space for companies facing mounting fuel bills and wider inflationary pressures.
Chief Executive Ben Fletcher said logistics firms were finding it increasingly difficult to cope with rising costs while continuing to operate on tight margins.
“The Prime Minister and Chancellor’s action on fuel duty and road tax shows the government has listened to our industry’s concerns,” he said.
Mr Fletcher said the cost of filling a large HGV had risen by 31% over the past three months to around ÂŁ1,000 per tank.
He warned those increases could not easily be absorbed by an industry responsible for moving goods across the economy every day.
“Deferring the rise in fuel duty to the end of the year, and introducing a 12-month road tax holiday, will be vital for helping businesses that are under acute pressure to plan ahead with greater confidence,” he said.
He added that the measures could also help limit inflationary impacts for consumers.
According to Logistics UK, the recent spike in fuel prices linked to the conflict in the Middle East has already generated an additional ÂŁ42 million in tax revenue for the Treasury.
Mr Fletcher described the government’s latest intervention as “a lifeline” for logistics businesses.
“At such a tough time for trade, these decisions will be a welcome boost to our sector,” he said.
Despite welcoming the announcement, Logistics UK said further support would still be needed to help firms manage the transition towards lower-carbon transport.
The organisation said it would continue pressing government for wider support on issues including low-carbon fuels, electricity costs and business rates.
Mr Fletcher said the sector needed long-term certainty to continue investing while also supporting the wider economy.
Logistics UK represents businesses across the road, rail, air and water freight industries, as well as retailers and manufacturers that rely on supply chains to move goods around the country.
The organisation said the logistics sector remained critical to keeping the UK economy operating during a period of rising costs and ongoing global uncertainty.