Taxation

Taxation is one of the single biggest concerns for FTA members. The Association campaigns on behalf of the logistics industry to create the optimum economic environment for members to operate in. Reducing the cost of logistics would expand the economy, make Britain more competitive globally and reduce the cost of goods in the shops.


What is FTA Campaigning for?

Rail

  • FTA is calling for rail freight diesel duty (red diesel) to be cut to reflect the social good (environmental, social and for congestion) that rail freight brings.
  • Rail Track Access charges increases should be prevented to avoid harming rail freight prospects, and long-term reductions targeted.

Road

Fuel Duty 

  • UK road freight is currently the most highly taxed in Europe.  Fuel duty is far higher than in other European countries.  Even when taxes are combined with road user charging costs, which are more widespread in some European countries such as Germany, UK operators still pay more for their operations per mile.
  • FTA urges Government to cut fuel duty to boost UK economic activity.  
  • FTA calls on the Government to take the opportunity to boost the economy by introducing a reduction in fuel duty by 3 pence per litre. There would be no environmental purpose to increasing diesel duty on vans and lorries as they have no alternative. Research from the Centre for Economics and Business Research (CEBR) shows that if a further 3 pence per litre (ppl) fuel duty cut was introduced by the Government it would bring substantial economic benefits. It would also be virtually revenue neutral for the Government as rises in other tax receipts would offset losses on fuel duty.  
  • Whilst alternatively powered logistics has not taken off en mass yet, alternatives to diesel are getting closer to being viable, for road operations at least. 
  • FTA is campaigning for lower levels of duty to be applied to lower emission road fuels that heavier HGVs can take up now.

Urban Charging

  • Urban restrictions and charging regimes are increasingly applying the car ‘ultra-low emission vehicle’ standard to their scheme across the full range of vehicles. So alternatively powered HGVs or hybrid vans capable of being zero emission whilst in city centres, are still in practice being prohibited or charged in full.  This is hindering take up of alternatives to diesel amongst commercial vehicles. 
  • FTA is calling on government for urban charging discounts and special access restrictions to be offered to Ultra-Low Emission Trucks and Vans, not just applying only the car standard as the test for this.
  • FTA urges Government to offer capital tax reliefs to companies seeking to purchase alternatively powered vehicles to help stimulate this market towards self-sufficiency.  

 

FTA is a founding supporter of Fair Fuel UK, the campaign alliance of hauliers and private motorists aimed at ensuing sensible road transport taxation policy. Find more details at www.fairfueluk.com

Find out more

Contact Christopher Snelling, Head of UK Policy at FTA

FTA briefing: UK Logistics, Taxation and Charges (March 2019)

FTA submission to the Chancellor of the Exchequer - Budget Statement 2017