The Road Haulage Association (RHA) has urged Chancellor Rachel Reeves to implement targeted fuel duty support for three groups of drivers: truck, van, and coach operators. The proposal, known as an Essential User Rebate, aims to help businesses recoup a portion of fuel duty paid at the pumps.
Rising Costs Threaten Supply Chains
RHA Managing Director Richard Smith warned that escalating fuel expenses are jeopardizing supply chains and fueling inflation across the economy. He emphasized that road transport is vital to the nation, carrying 80% of all goods and materials and 98% of food. Smith argued that without intervention, higher costs will be passed on to households, exacerbating inflationary pressures.
Call for Targeted Support
Smith stated: "Targeted support - allowing truck, van and coach operators to reclaim fuel duty. This common sense measure would immediately reduce fuel costs." He noted that fuel duty and VAT already account for over half of the price paid for fuel in the UK. The RHA insists that the government must act now, moving beyond the review stage to implement concrete measures.
The association specifically cited three groups needing the rebate most: trucks, vans, and coaches. Smith highlighted that operators are working on tight margins and cannot absorb the 40% rise in fuel costs driven by global events. He concluded: "Our message is clear: Back essential users of fuel with targeted support and scrap planned fuel duty hikes."
