Fuel duty and HGV levy frozen for another year

Read Article
Published: 27 November 2023
Categories: News Article

Fuel duty and HGV levy frozen for another year

Fuel duty has been frozen for the 13th year in succession, although the Chancellor of the Exchequer made no mention in his Autumn statement of extending a temporary 5p per litre cut due to run out in March. The RHA said it was “delighted” that its campaigning efforts had been listened to by the government and that the freeze on VED and the HGV levy for 2024/25 would support hauliers facing significant cost pressures.
Fuel duey and HGV Levy frozen Image by Eddie Cloud on Adobe Stock
“The cost of operating an HGV has risen by nearly 10% over the past 12 months in the face of thin average margins of just 2%,” the RHA said. “Our industry is experiencing reduced activity and fewer goods being moved due to cost-of-living challenges. Road freight volumes are down by 10% and we have seen an increase in insolvencies with reduced profitability.” Howard Cox, founder of FairFuelUK, said it would be churlish for him not to thank the Chancellor for the freeze, but he added: “The threat of the Rishi Sunak’s Budget temporary 5p cut in duty being reversed in the 2024 Budget still hangs over motorists’ heads. “Inflation could be reduced massively more, had he reduced this needlessly high regressive levy significantly, partnered too, by an effective pump pricing watchdog, a ‘PumpWatch’ with real teeth.”” Fuel card provider Right Fuel Card said it was disappointed there were no announcements in the Autumn statement about further cuts in fuel duty, particularly for commercial users: “Increases in fuel prices have had a direct impact on the stability of many businesses, therefore, we support the calls made by the RHA to implement an essential user rebate to support our customers at a time of economic stagnation,” said Matthew Briggs, Right Fuel Card CEO. “Although pump prices have seen a small decline, they’re still very much a cause for concern.” Written by Chris Tindall for Motor Transport © 23 November 2023. To gain further assistance in maintaining compliance, explore our DVSA Earned Recognition fleet and workshop software by clicking here.