Hundreds Support Road Haulage Association Fuel Duty Appeal

Introduction

Rising fuel costs have a significant impact on transport operators, drivers, and the wider supply chain. In response, more than 470 operators have supported a Road Haulage Association (RHA) open letter to the Chancellor, urging the government to reconsider planned fuel duty increases and introduce targeted relief measures.

RHA’s Call for Fuel Duty Relief

The RHA has requested the government to halt the scheduled fuel duty increases set to begin in September 2026. The association highlights that a 5p cut in fuel duty was introduced in 2022 due to international conflicts causing fuel price surges. Given the current similar circumstances, the RHA argues that reversing these cuts now would be ill-timed and detrimental.

The letter emphasises that higher fuel prices increase costs for consumers and businesses alike, risking another inflation crisis driven by fuel expenses.

Proposal for an Essential User Rebate

The RHA is advocating for the introduction of a targeted Essential User Rebate to support key fuel users within the transport sector. This proposal draws on precedents such as the Bus Service Operators Grant (BSOG) and the Rural Fuel Duty Relief scheme, which provide rebates to bus operators and rural motorists respectively.

The association notes that other European countries, including Spain, France, and Italy, have implemented similar measures to support their transport industries during periods of high fuel costs.

Additional Requests and Sector Impact

Alongside fuel duty relief, the RHA is calling for fair payment terms of 30 days to improve cash flow across the transport sector. Richard Smith, RHA Managing Director, emphasises that commercial vehicles transport approximately 80% of Britain’s goods and contribute over a third of fuel duty revenues, yet are disproportionately affected by rising fuel prices.

He warns that fuel cost increases are inflationary, pushing up prices across various sectors such as food and construction, and stresses the need for government action to prevent further economic strain.

Mi Compliance Insight

Transport operators and compliance professionals should monitor developments regarding fuel duty policies and potential rebate schemes, as these will directly affect operational costs and financial planning. Staying informed enables better planning for changes in fuel pricing and government support measures. For further guidance or to discuss how these changes may impact your operations, please contact Mi Compliance.

Source: https://motortransport.co.uk/industry-news/-hundreds-of-operators-back-rha-calls-to-scrap-fuel-duty-increases/89863.article