The Road Haulage Association (RHA) is warning that Britain’s transport operators are being pushed to breaking point by soaring fuel costs, with its new figures revealing that fewer than four in 10 believe their businesses can keep running before conditions become unsustainable.
The RHA survey highlights that fuel prices have rocketed by 35% since the Iran conflict began three months ago, leaving many haulage, coach and van firms fighting for survival.
The association is calling on the Government to introduce an Essential User Rebate, a targeted measure that would help firms cut the cost of moving people and goods and ease the pressure forcing prices up for customers. Managing director Richard Smith said: “Just 39% of businesses are confident they can keep going under current pressures before it becomes unsustainable. That is a stark picture of the conditions transport operators are currently working in. “We need the Government to act now. We are calling for an Essential User Rebate to help businesses in our key sector reduce the cost of doing business and relieve inflationary pressure.
Seven in 10 operators told us a rebate would reduce the need to raise prices for customers.” The Government recently cut red diesel duty, so it already recognises that fuel price shocks are hurting the transport sector. The RHA is calling for the same for users of white diesel. Smith added: “With firms fearing the worst, eight in 10 told us their already razor-thin margins are being squeezed, with rising fuel prices creating cashflow problems.
This is an issue demanding immediate action. The measures we’re calling for would provide respite and give businesses the confidence to look ahead without the spectre of insolvency hanging over them.” Looking further ahead, the RHA is also calling for fuel duty increases to be delayed indefinitely and for the Government to scrap plans to link fuel duty to RPI from next April. The association has written to the Chancellor and relevant ministers, urging a meeting to discuss these issues.
