Chancellor opts not to increase fuel duty
T
he government has opted to freeze fuel duty for both petrol and diesel until at least April 2019,
in a move that has been welcomed by the waste sector.
T is was among the central transport related announcements in the government’s autumn budget statement, announced at the end of November by the Chancellor Philip Hammond, which set out a series of fi nancial measures that are likely to be of interest to waste management businesses.
Despite coming under sustained pressure to increase fuel duty rates in a bid to incentivise drivers towards alternatively fuelled vehicles, the Treasury has maintained that it will review whether existing fuel duty rates, as well as those for alternative fuels such as LPG, are appropriate ahead of next year’s budget.
Alongside the fuel duty freeze, the Chancellor revealed that from April 2018, the fi rst year vehicle excise duty (VED) rate for diesel cars that don’t meet the Real Driving Emissions Step 2 standards, will go up by one band. T is does not apply to HGVs however, with the Treasury announcing a freeze on the HGV VED and Road User Levy rates from 1 April 2018.
Government will also issue a call for evidence on updating the existing HGV Road User Levy to reward hauliers that plan their routes effi ciently, to encourage the effi cient use of roads and improve air quality.
Further measures to support local authorities in reducing air quality from road transport include a £220 million clean air fund.
Commenting on the Budget, Christopher Snelling, head of national and regional policy, at the Freight Transport Association said that a drop in the fuel duty rate could have provided a boost to business.
He said: “A freeze in fuel duty is a welcome decision, but it demonstrates a real lack of ambition by the Chancellor. T e cost of moving goods around the country and overseas determines the cost of doing business in Britain and the price of goods in our shops. At a time when British business is under extreme pressure to prove its credentials and reinforce existing trading relationships, Mr Hammond has missed an opportunity to cut these costs, and make the UK a more competitive place to do business.
“Fuel duty increases would have been the wrong tool to use to address air quality. As logistics operators currently have no practical alternative to diesel it would have produced no change in behaviour, just adding cost to those businesses who are facing the burden of the planned Clean Air Zones.”
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