Rachel Reeves has been strongly urged to implement significant changes that would prevent businesses from facing increased fuel costs. The Road Haulage Association (RHA) is calling on the Labour Party government to introduce targeted measures that allow drivers to reclaim a portion of the fuel duty paid at the pumps.
RHA Managing Director Richard Smith emphasizes the urgent need for fuel duty support specifically for truck, van, and coach operators. He warns that rising fuel expenses are putting supply chains under severe pressure and fueling inflation across the entire economy.
“Eighty percent of all goods and materials and ninety-eight percent of food transported in Britain rely on road transport,” Smith told Motor Transport. “From shops stocking shelves to hospitals receiving supplies, and construction sites beginning work, the haulage sector is essential to the nation’s functioning.”
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Smith pointed out that global factors have driven business fuel costs up by more than 40%. Many operators work within very tight margins and cannot simply absorb these costs without passing them down the supply chain, which in turn increases prices for households and puts further strain on the economy.
To address this, Smith proposes an “Essential User Rebate” for commercial vehicles, allowing targeted support to enable truck, van, and coach operators to reclaim fuel duty. This straightforward solution would meaningfully reduce operating costs.
He added, “Fuel duty and VAT together make up over half the cost of fuel in the UK. The government already has the tools to intervene, but the current situation is unsustainable.”
With the Prime Minister promising to keep fuel support under review, Smith insists that the time for deliberation has passed. “Our industry provides essential services that cannot be paused. We need immediate action—targeted support for essential fuel users and a cancellation of planned fuel duty increases.”