The Freight Transport Association (FTA) has issued a statement calling for the chancellor George Osborne to implement a reduction in fuel duty in his upcoming Autumn Statement.
Aimed at tackling the ongoing high cost of fuel for hauliers across the country, the FTA has asked Mr Osborne to build on his commitment to freezing fuel duty for the length of this parliament and to introduce a three pence per litre cut in tax in his upcoming announcement.
Doing so, the FTA argues, could provide not only a considerable reduction in costs for the nation's haulage providers, but the net effect of increased fuel consumption and vehicle mileage would deliver an overall increase in tax revenues for the government – effectively a win-win for both taxpayers and industry.
FTA director of policy Karen Dee stated: "The current rate of fuel duty costs industry around £6.74 billion a year. In a market place with ever-shrinking borders between countries, fuel duty is also a barrier to fair competition across Europe; the UK diesel duty rate is 24 pence per litre higher than the average rate across the EU.
"Profit margins within the freight industry remain tight, and therefore costs increases must be passed on to customers and ultimately to consumers."
She added that just a one penny increase in fuel duty would equate to additional running costs of £480 per year for a typical 44-tonne lorry and this, combined across entire fleets, would result in significant increases in expenditure for all UK haulage operators.
At present, it has been approximated that around 40 per cent of all running costs for the average 44-tonne lorry are spent on fuel. This is therefore the single-largest area of expenditure for many businesses and one that could benefit greatly from favourable developments in this year's Autumn Statement – the last of this parliament before the general election early next year.
It is the last chance the chancellor could have to deliver a lasting and positive impact for motorists and hauliers up and down the country and it is an opportunity Mr Osborne should consider carefully before it is spurned.
Ms Dee went on to add that the ongoing shortage of qualified drivers available to UK hauliers is also a considerable concern for the industry at present. As a result, the removal of barriers to new entrants into the profession, such as the high cost of attaining a licence, would also be an extremely welcome development in this year's Autumn Statement.
According to the FTA, there is at least a shortage of 45,000 qualified heavy goods vehicle operators in the UK at present and this situation is forecast to only get worse, with 35,000 drivers predicted to retire in 2015, but less than half of this number expected to enter the profession.
Finally, the FTA has also called upon the chancellor to give additional guarantees that the government's Roads Investment Strategy will provide sufficient funding to deliver the full approved programme of road improvements in the years ahead.