Budget: fuel duty frozen and 5p cut remains
The Chancellor has announced that fuel duty will be frozen and the 5p over litre reduction will be maintained for a further year, in his Spring Budget.
Fuel duty was cut by 5ppl in March last year by the then Chancellor, Rishi Sunak. This was meant as a temporary measure due to record pump prices at the start of last year and was due to end this month.
Logistics UK’s Chief Executive, David Wells, comments: “The announcement that the 5ppl cut in fuel duty is to be retained for a further 12 months is very welcome news for logistics businesses, particularly SMEs – who make up 99% of the industry, and traditionally operate on low margins. Logistics UK has consistently urged government to extend this cut, while maintaining revenue levels through VAT and other sources. Logistics is at the heart of every sector of the economy; this decision recognises the importance of managing logistics costs to avoid further inflationary pressures on business and consumers. This should help to ensure businesses have the funds to invest in productivity, growth and greener technologies, alongside the new policy for full capital expenditure announced as the successor to the super-deduction (providing it encourages the transition to a zero-carbon economy)."
Paul Hollick, Chair of the Association for Fleet Professionals (AFP) said: " An increase in 11 pence per litre would’ve been extremely unwelcome at a point in time when the economy is struggling and removing that possibility is very much welcome.”