The Chancellor of the Exchequer, Philip Hammond, has announced that there will be a rise in fuel duty to help fund the failing NHS. But what does this mean for hauliers up and down the country? In this article we take a look at the impact this is likely to have on haulage firms.
November Budget
Hammond has suggested that the November Budget will include the rise for the first time in almost 10 years as he struggles with NHS funding issues as the Brexit disruption rumbles on. In discussions with fellow MPs, he has said he desperately the rise for the first time in almost 10 years as he struggles with NHS funding issues as the Brexit disruption rumbles on. In discussions with fellow MPs, he has said he desperately needs to find funds to plough into the ailing National Health Service.
The Big Freeze
The Treasury is backing a fuel duty freeze in the winter Budget, but Philip Hammond has publicly announced he won’t support his. Instead, the Chancellor has suggested that there will be a tax increase on both petrol and diesel which will alleviate the financial pressures faced by the NHS. If this goes ahead, the cost to Chancellor has suggested that there will be a tax increase on both petrol and diesel which will alleviate the financial pressures faced by the NHS. If this goes ahead, the cost to hauliers – along with their HGV Insurance and other costs – is likely to be extremely damaging to the industry.
Savings
MPs have been told by Hammond that between 2010 and 2019, when a fuel duty freeze was in place, it has saved £850 for the average car driver and more than £2,100 for the average van driver. This has been complemented by competitive insurance quotes – the market is flooded with them, including – making for a strong sector.
The Flip Side
Hammond has put forward a counter argument, saying that the freezes have been costly to the Exchequer – to the tune of £46 billion in lost revenues through to 2018-2019, with another £38 billion forecast. This, according to Hammond, is twice as much as he spends on doctors and nurses in the NHS each year.
High Levels
Fuel is at its highest price for four years and, controversially, the UK has some of Europe’s highest levels of taxation on petrol and diesel.
Bad News
The news has hit the haulage industry hard as they struggle with high fuel costs. Many firms have voiced their disappointment that motorists and drivers are being targeted to save the NHS when the funding should be evenly spread they struggle with high fuel costs. Many firms have voiced their disappointment that motorists and drivers are being targeted to save the NHS when the funding should be evenly spread throughout the country.
