Today’s Budget is critical for the road haulage industry – the sector responsible for moving 90% of the UK economy.
If the rumours are to be believed, the Chancellor intends to end the 7-year long freeze on fuel duty. Should this happen, the negative effect on the haulage industry will be considerable.
Fuel represents up to a third of an truck’s running costs. A modern 44-tonne HGV will return around 8mpg and typically cover 73,000 miles a year. To do that, it will use 41,483 litres (9,125 gallons) and cost, at today’s prices, £40,355 ex vat.
A single penny increase – either in the price of fuel or fuel duty adds an additional £414 per annum to the operating cost of that same truck – a cost that the operator will have no choice but to pass on to his customer. That additional cost will, in turn, have to be passed along the entire supply chain, only stopping when the consumer buys the product at a higher price.
The Road Haulage Association policy team, including chief executive, Richard Burnett and director of policy, Rod McKenzie will be on hand throughout the day, close to Millbank Studios, for pre and post Budget comment on fuel duty and the other major issues of concern to Britain’s road freight industry. this and the and will be close to Millbank studios for interviews.