Government unveils fuel duty and HGV tax relief measures for UK fleets and farmers
By Fleetmaxx Fleet Insights
The Government has today announced a new package of measures aimed at helping businesses, hauliers and motorists manage ongoing cost of living pressures, with further announcements expected tomorrow.
The latest updates will be welcomed by many transport operators and fleet businesses already dealing with rising operational costs, inflationary pressures and continued uncertainty across the wider economy.
Fuel duty cut extended
One of the key announcements is the extension of the existing 5p per litre fuel duty cut for the remainder of the year.
The temporary reduction was originally introduced in March 2022 to help motorists and businesses manage rising fuel costs following the outbreak of the war in Ukraine and the resulting impact on global oil markets.
The cut, which was initially intended as a short-term measure to support households and businesses through the cost of living crisis, will now continue beyond its previous end date. For businesses operating vans, HGVs and commercial fleets, the extension offers some continued protection against higher fuel costs during an already challenging trading environment.
For high-mileage operators, even small reductions in pump prices can make a meaningful difference across a fleet over the course of several months.
Major HGV VED savings for hauliers
The Government has also confirmed a 12-month moratorium on HGV Vehicle Excise Duty (VED).
Under the new arrangement, hauliers renewing eligible HGV tax will pay just £1 during the moratorium period.
The move is expected to save:
- Around £600 for a typical heavy lorry
- Up to £912 for the largest HGVs currently on UK roads
For transport operators managing multiple vehicles, these savings could quickly add up and provide some much-needed breathing room within fleet budgets.
With many operators continuing to battle rising insurance premiums, wage costs, maintenance expenses and compliance requirements, the VED support will likely be seen as a positive step for the logistics and haulage sector.
Red diesel duty reduced
The Government has also announced that the fuel duty rate on red diesel will reduce from 10.18p per litre to 6.48p per litre from 15 June until the end of the year.
Industries that rely on red diesel, including parts of the construction, agricultural and plant sectors, may benefit from reduced running costs during the temporary reduction period.
Businesses operating eligible machinery and off-road equipment are expected to see some savings as a result of the lower duty rate.
What this means for fleet operators
While these measures will not remove all of the financial pressures facing UK fleet operators, they do provide some welcome relief at a time when businesses continue to carefully manage costs.
At Fleetmaxx Solutions, we continue to monitor developments closely and work with our fuel card and fleet partners to help customers control fuel and vehicle running costs wherever possible.
Alongside Government support measures, many businesses are also reviewing:
- Fuel card options
- Vehicle tracking and route optimisation
- Driver behaviour monitoring
- AdBlue® purchasing strategies
- EV transition planning
- Fleet compliance and efficiency measures
As further announcements are expected, we will continue to keep our customers updated on any developments that may affect fuel, fleet and transport operating costs.
If you would like to discuss ways to reduce your fuel and fleet costs, please contact the team at Fleetmaxx Solutions.