The chancellor’s decision to freeze fuel duty for a further year has been called 'welcome news' for the UK logistics sector.
Chancellor Rachel Reeves said the government will freeze fuel duty next year and maintain the existing 5p cut for another year.
There will be no higher taxes at the petrol pumps next year, the chancellor explained in the autumn budget (30 October).
Business group Logistics UK welcomed the decision, as the sector operates on very narrow margins – often only 2.5% - with fuel representing a large proportion of the weekly operating cost for hauliers.
David Wells OBE, Chief Executive of Logistics UK, said: “Today’s announcement should drive confidence in our sector’s ability to deliver for its customers. with confidence.
“Nothing moves without logistics: the sector supplies our hospitals, schools, factories, shops and homes with everything they need, everywhere, every day.
"The sector is vital to any plans to stimulate growth across the economy, and this respite is welcome news for a sector already seeing increasing business failures over the last year."