Paul Holland, Managing Director for UK/ANZ Fleet at Corpay (including Allstar), says the Chancellor of the Exchequer is missing an easy win on both growth and emissions. He argues that cutting fuel duty and incentivising greener fuels like HVO would give fleets room to breathe and momentum to decarbonise faster.
Paul Holland
Every Autumn Budget we end up talking about fuel duty, and every year it gets kicked down the road. But let’s be honest, if the Chancellor is serious about growth, cutting fuel duty is one of the fastest ways to get it. Fleets are on the frontline of costs. A penny on duty doesn’t just hit a business or fleet, it feeds straight through into the weekly shop, the cost of a parcel, the price of a pint of milk. Keeping the freeze is not some political gesture, it is about stopping inflation from creeping into every corner of the economy.
But here’s the part no one wants to say: the system is stuck in the past. Cleaner fuels like HVO, which could cut emissions by up to 90% compared to diesel, are still taxed at the same rate as conventional fuels. I find that hard to fathom. If the Government really wants businesses to switch to greener fuels, then the Autumn Budget is the moment to act. Reward operators who make the greener choice, cut duty on alternatives, and you’ll see momentum fast.
Logistics makes up roughly a quarter of the UK’s transport emissions. Trucks and vans are essential, but they’re also a huge carbon contributor. We need a Budget that recognises fuel duty as a lever for growth and a lever for decarbonisation. Right now, the Government is leaving one of the simplest wins on the table. I say cut the duty where it makes sense, and businesses will do the rest.
