Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Fuel duty increases should be off-limits during next Budget, says FTA
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Fuel duty increases should be off-limits during next Budget, says FTA

Date: 21 May 2015   |   Author: Daniel Puddicombe

The Freight Transport Association is warning that the Chancellor, George Osborne, could announce fuel duty increases as part of his summer Budget on 8 July.

The FTA is calling for a 3p/litre cut in fuel duty to help drive an economic recovery. It calculates that if 3p/litre was cut off the price of fuel commercial vehicle operators would be £360 million a year better off, particularly small and medium-size companies.

"The reality is that a 40% drop in crude oil prices has only resulted in an 11% decrease in bulk diesel prices paid by a majority of fleets and even lower reductions at the forecourt as retailers have sought to increase their margins," said James Hookham, FTA deputy chief executive. "The Chancellor needs to understand that fuel duty is still off-limits as he considers his Budget statement in July."

The new Budget will reveal further policy plans and could include details of how the UK will tackle air quality targets.

The Government has been ordered to take severe action on improving air quality by the end of this year, after the Supreme Court, the final appeal court in the UK law, ordered that it must submit plans by 31 December, 2015.

The plans will need to include measures to cut NO2 levels, which some experts blame on diesel vehicles.

This was followed by Osborne's announcement to give cities with an elected mayor powers to control transport, planning, housing and skills.

Some in the industry believe this could lead to cities introducing their own congestion charge zones to tackle air quality targets.

The Government's last budget was on 18 March and included changes to company car tax and included measures to increase investment in driverless cars.