Main Navigation

Increased tax on fuel could "obliterate" smaller haulage firms

By: Deborah Bates
07 January 2011

Concerns have been expressed within the transport industry that the latest increase on fuel tax could cripple smaller haulage firms and affect those who earn a living from logistics work.

Logistics expert, Nick Graham, has spoken out on Logistics Manager, claiming: "Haulage companies are a key part of Britain's 'hidden' logistics sector, transporting the goods that we use in our everyday lives."

"Large companies are able to plan for these fuel duty rises, but this latest hefty leap could obliterate some of the smaller, more local operators. For many of these, profit margins are generally well below five per cent of revenue and it has been estimated that fuel costs now contribute to around 35 per cent of their running costs."

Graham added that "the impact of such drastic fiscal measures should be reconsidered."

The Freight Transport Association (FTA) has also voiced their opinion over the taxi hike, claiming "rises in fuel commodity prices have already left operators facing diesel prices nine pence per litre higher than a year ago - adding £3,8000 a year to the bill of running an articulated truck."

"This latest fuel duty increase, together with those previously introduced will add a further £1,200 a year."

The chief economist of the FTA, Simon Chapman, is worried that businesses will suffer as fuel is not optional; "It is essential to keep shops stocked and businesses supplied with materials," he added. Cited on Transport Engineer, he concluded with his thoughts on the Chancellor, claiming he is treating the transport industry as a "bottomless well from which cash to bolster the public finances can be drawn."

Top of page