Organisations have given a cautious welcome to the cancellation of the 3p per litre fuel duty increase planned for January 2013.
The Chancellor of the Exchequer, George Osborne, annunced in his Autumn Statement that the 3.02p per litre increase, which had already been deferred, would be cancelled.
Julie Jenner, chairman of ACFO, said: "The Chancellor’s decision to cancel the scheduled 3.02p per litre rise in fuel duty planned for January 1, 2013 is welcomed.
"Additionally, ACFO is pleased that the Chancellor has decided to defer subsequent fuel duty increases for the remainder of the current Parliament to September 1 each years, instead of April 1.
"The Chancellor’s Statement clearly clarifies that businesses can plan their fuel budgets and journey management strategies for the next eight months without fear of further fuel duty rises.
"That is a great help. However, the Chancellor could have truly kick-started economic recovery by cutting fuel duty with immediate effect.
"“Pump prices are already at, or close, to record levels, and while the decision on duty will not immediately increase fleet costs the Chancellor has done nothing to reduce the cost of fuel for employers and private motorists.
"Cars and commercial vehicles are a business necessity for the vast majority of organisations which remain burdened by extremely high fuel prices."
However, some organisations believe more should be done to help reduce the burden of the increasing cost of fuel on fleet operators.
Research fromvehicle remarketing company, British Car Auctions (BCA), confirms motorists’ continued concerns over the cost of fuel.
"This will come as a huge relief to many motorists who are struggling with fuel prices as demonstrated by our research," said Tim Naylor, editor of the BCA Used Car Market Report.
“70% of car owners admitted they had taken steps to cut their car operating costs. Many are changing the way they drive to maximise their fuel efficiency.”
BCA data reveals that motorists are trying different ways to combat the financial pressures including altering the way they drive (17% drive more slowly to conserve fuel), avoiding heavy breaking (16%) and opting for more fuel-efficient models.
A statement from ATS Euromaster said: “The Chancellor’s avoided delivering a hammer blow to the economy with his decision on fuel duty; but what we really needed to hear was a 3-6 pence per litre (ppl) reduction in fuel duty to encourage growth and consumer spending, whilst reducing distribution costs to everyone’s benefit.”
“The Chancellor’s announcement that he intends to cancel the fuel duty rise that was planned for January comes as a welcome surprise”, said RHA Chief Executive Geoff Dunning.
“However, the fact remains that for many hauliers, this latest move will only be seen as a delaying tactic. UK hauliers are tremendously resilient. What other sector of UK industry can survive on profit margins of, in some cases, less than one per cent? Despite this ours is the industry on which the rest of the economy is almost entirely reliant."
Future increases in fuel duty will be planned to take effect on September 1 each year for the remainder of the Parliament, rather than April 1.
Jakes de Kock - The Fuelcard Company - 06/12/2012 09:15
I think the resounding sentiment from today’s Autumn Statement must be positivity, and it’s certainly about time. News that the proposed 3pppl fuel duty increase has been cancelled after more than a year of deferrals is undoubtedly a huge boost to the transport sector and testament to the tireless efforts of campaigns such as FairFuelUK. At least it means we can all look forward to starting the New Year with optimism – and slightly less concern for our stretched budgets. For a long time we have been calling on the Government to recognise the importance of UK infrastructure, particularly transport, which is the backbone in keeping our economy moving, so it’s good to hear George Osborne’s plans for much-needed investment in our roads. Proposed improvements to the A1 and M25 will be an important boost in developing transport links between the North and South, I just hope the execution is as good as the promise! While I’m also pleased to hear of the Government’s invigorated support for UK exporting, I would still like to see more help for the businesses who will be transporting goods to the ports and airports before they leave the country. Our agricultural industry survives through the use of red diesel obtained at a lower cost than regular fuel, so why could the Government not offer a similar scheme, or at the very least tax breaks, for the drivers and transporters who will be facilitating this boost in exports? Overall, I think we have plenty of reasons to be encouraged by Mr Osborne’s plans. As always, there is still more to be done however it seems the Government may be finally beginning to understand what the UK economy needs in order to get back on track. I look forward to seeing what April’s Budget will bring.