Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of planned increases in fuel duty in 2027 on (a) small and medium-sized road haulage businesses, (b) employment in the road transport sector and (c) consumer prices; and whether she has considered introducing an Essential User Rebate of 15 pence per litre for qualifying heavy goods vehicle, coach and essential van operators.
The Government has taken action to support households and businesses with their fuel costs, in response to the conflict in the Middle East. At Budget, the Government announced it is extending the temporary 5p per litre (ppl) fuel duty cut for a further six months to 1 July 2027. The Government is also deferring the planned Retail Prices Index (RPI) increase to 1 July 2027.
Recognising the importance of the haulage sector, a12-month vehicle excise duty (VED) holiday for the majority of heavy goods vehicles is also in place. Eligible HGVs will pay just £1 when they licence between 1 July 2026 and 30 June 2027. For a typical 44-tonne 6-axle articulated lorry, this will save £600.