"Logistics UK has repeated its call for Chancellor Rachel Reeves to reverse the scheduled increase, due to begin in September, arguing that the timing risks compounding inflationary pressures across supply chains at a fragile moment for the economy."
"Industry leaders say higher fuel duties would feed directly into logistics costs, with knock-on effects for food prices, retail margins and household bills. They argue that any tax rise on diesel and petrol would effectively act as a "multiplier" on already elevated operating costs."
"Logistics UK said firms were still absorbing previous cost shocks and warned that further pressure on fuel prices could slow investment and weaken resilience across freight and distribution networks."
""Our members provide everything that every part of the economy relies on, every day," explains Ben Fletcher, Logistics UK's Chief Executive, "but they are currently facing ever increasing cost pressures, most notably the sharply rising price of fuel. Crude oil now costs over $110 a barrel, and the cost of filling up a large HGV has risen by 31% to nearly £1,000 in the past three months. With most logistics businesses operating on very narrow margins and unable to absorb this level of increase, we have made clear to government that the impact is likely to be higher inflation for everyone.""
Business groups are pressuring the Chancellor to drop plans for a 5p increase in fuel duty starting in September. Logistics UK argues the timing could intensify inflation across supply chains during a fragile economic period. The pressure comes as the Treasury prepares support measures for families and businesses affected by Middle East geopolitical instability, which has unsettled energy markets and increased transport and shipping costs. Industry leaders say higher fuel duties would directly raise logistics costs and then spread to food prices, retail margins, and household bills. They warn that diesel and petrol tax increases would act as a multiplier on already elevated operating costs, potentially slowing investment and weakening freight and distribution resilience.
Read at London Business News | Londonlovesbusiness.com
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