Rachel has written to the Chancellor ahead of the budget, calling on him to extend the fuel duty freeze. In her letter she said:
Dear Chancellor,
Impact of the war in Iran on fuel prices
I am writing to you as a constituency MP, and as Chair of the APPG for Freight and Logistics, about the increased cost of fuel that is occurring due to volatility in the Middle East and the impact this is having on ordinary motorists, the freight sector, and the economy.
The freight and logistics sector is a keystone employer in my constituency, with more than 20% of my constituents employed directly in the sector and thousands more jobs connected to its supply chain. The sector underpins the entire UK economy and is particularly important to the West Midlands. Any increases in costs to the transportation of goods around the country will impact not just the sector directly, but also inflation more broadly as increased costs are passed on to consumers. Freight businesses already operate on low profit margins, with fuel costs representing between a fifth and a quarter of operating costs.
In addition, the Prime Minister has spoken about giving people up and down the country breathing space from the cost-of-living. In a semi-rural area like mine with poor public transport connectivity and high levels of car usage, high fuel costs are a significant factor in the cost-of-living squeeze being felt by ordinary families.
I welcome the government’s decision this year to extend the fuel duty freeze – something I called for – in addition to introducing a 12-month road tax holiday for hauliers and a cut to red diesel duty that brought it to its lowest rate in over twenty years.
However, with the fuel duty freeze due to expire imminently, I am deeply concerned that without further extension an increase to fuel costs will present a significant challenge to haulage businesses and my constituents, and drive-up inflation in the broader economy. Therefore, I would ask that you consider extending the freeze on fuel duty further to safeguard this vital industry and help tackle the cost-of-living.
I thank you for your attention and I look forward to hearing from you.
Yours sincerely,
Rachel Taylor MP