The Road Haulage Association (RHA) is calling for significant fiscal measures to support UK haulage operators.
- A freeze on fuel duty is deemed critical to prevent further strain on haulage businesses.
- The introduction of a rebate for essential users is recommended to level the playing field.
- An extension of full expensing and maintenance of VED freeze are further sought after measures.
- A potential increase in fuel duty is anticipated to negatively impact the economy.
The Road Haulage Association (RHA) has put forth a compelling case for targeted financial measures to aid the beleaguered haulage sector, as the UK government prepares its autumn Budget. The association underscores the importance of maintaining the current freeze on fuel duty, citing its role in cushioning haulage operators against escalating operational costs. Hauliers are apprehensive about potential reversals of this policy, which could exacerbate financial pressures.
In addition to maintaining current fuel duty levels, the RHA has proposed a rebate for essential users. This measure aims to mitigate the competitive disadvantages faced by commercial vehicle operators who are burdened by high fuel costs. Such fiscal adjustments would provide much-needed relief and foster a more equitable market environment.
The RHA’s submission includes further recommendations such as making the HGV skills bootcamps permanent and extending full expensing benefits to leased assets. These initiatives are intended to bolster skill development and fiscal flexibility in the haulage industry, thereby enhancing its overall resilience and adaptability in the long term.
Furthermore, the organisation urges the government to continue the freeze on Vehicle Excise Duty (VED) for heavy goods vehicles (HGVs) and the HGV levy. By maintaining these freezes, the government could alleviate some of the financial pressures on the transport sector, allowing it to better contribute to economic growth.
A critical warning is issued regarding the economic implications of a potential 5p increase in fuel duty. The RHA predicts such a rise could slash GDP by £430 million annually, result in over 5,000 job losses, and drive up the Consumer Price Index (CPI) by 0.2%. These dire projections highlight the potential widespread economic repercussions of reversing the existing duty freeze.
The RHA’s budgetary recommendations underscore the critical role of fiscal policy in supporting the UK haulage sector amidst mounting economic challenges.
