The transport industry has been united in its criticism of Chancellor Rachel Reeves plans to reverse the 5p cut on fuel duty after September 2026.
This decision and the increase of fuel duty rates by inflation from April 2027 will be a hammer blow for many businesses and push up the cost of living for families across the country, according to the Road Haulage Association (RHA).
Whilst the RHA welcomed her decision in yesterday’s (Wednesday) budget to initially continue the freeze until next September, as independent economic research shows – a 5p rise in fuel duty would increase household costs by £2bn annually, pushing up the price of everyday essentials.
Future fuel duty increases now loom large for families struggling with the cost of living and for the many small businesses who keep our supply chains moving.
Commenting on Chancellor Rachel Reeves’ announcement in the Budget of an increase in fuel duty from September 2026, Logistics UK Acting Chief Executive Kevin Green said,
“Instead of nurturing the green shoots of economic recovery, the government risks stamping them out. The increase in fuel duty announced in the Budget will mean hundreds of millions in increased taxes for logistics businesses, much of which will be passed onto households and businesses, as well as hitting motorists directly – fuelling inflation across the economy. It is a short-sighted decision that fails to appreciate logistics’ role in the economy – logistics costs are embedded in all products from food and medicines to construction materials and consumer goods: increasing logistics taxes mean increased costs for everyone.
“Logistics businesses already pay around £5.5 billion a year in fuel duty – increasing the tax burden on our industry shows a disregard for a sector that generates £170 billion for the UK economy, employs over 8% of the nation’s workforce and is key to the government’s growth agenda. We urge the Chancellor to reconsider this decision at the earliest possible opportunity, or risk an inflationary impact right across the economy in the spring” continued Mr Green.
