RHA has welcomed a call from Northern Ireland First Minister Michelle O’Neill and Deputy First Minister Emma Little-Pengelly seeking relief on fuel duty and targeted support for businesses including SMEs against the ongoing diesel price crisis.
The trade body continues to call for an essential user fuel duty rebate for coach, haulage and van users, and the scrapping of a planned increase in the tax from later this year.
As Ms O’Neill and Ms Little-Pengelly wrote to Prime Minister Keir Starmer seeking relief, RHA says that over 470 transport operators have signed an open letter to Chancellor Rachel Reeves calling for a halt to the planned increases in fuel duty from September.
Managing Director Richard Smith says Ms Reeves must “act now” on that, and has underlined the Association’s position on introduction of a targeted essential user rebate that would capture coach operators.
Ms O’Neill and Ms Little-Pengelly want immediate action from ministers in responding to the fuel crisis. They note that where businesses encounter such increases, they “are inevitably being passed on further, deepening the cost-of-living crisis.”
RHA says there is “a significant precedent” for the essential user rebate, pointing to Bus Service Operators Grant and its devolved equivalents as serving that purpose in the bus sector.
In addition to the rebate and abandonment of the planned increases to fuel duty from September, RHA wants there to be no link between the rate of that tax and inflation from April 2027, and what it says are “fair payment terms” to support operators’ cash flow.
Its case for those measures has already been made out, but the trade body will continue to press it over coming days “as this matter is urgent.” Mr Smith highlights how the Liberal Democrats seek a 10ppl cut in fuel duty for three months, capturing all users.
“The message we are still getting from operators is clear: the pressure is immediate,” adds Mr Smith. “Fuel costs have risen sharply, with many businesses reporting increases of over a third on a short space of time. This is unsustainable.”
Mr Smith observes that other countries are already helping transport operators with rising diesel costs and that the UK must follow suit.
In the Republic of Ireland, ministers over the weekend of 11-12 April held what the Irish Government says were further “constructive meetings” with representatives from sectors including road transport to finalise “a significant support package” on fuel costs.
Among those parties were the Coach Tourism and Transport Council, which has given its support to the proposed measures. While precise details has not yet been announced, but it is described as a transport support scheme for which work is underway.
Earlier, senior politicians including Taoiseach Michael Martin met with road transport representatives to discuss the fuel cost impact on freight operators. In March, the Irish Government announced a €250 million package of temporary support on fuel prices for businesses and households.
That runs to 31 May and has seen a cut in duty to 31 May along with an increase in the maximum repayment for passenger and freight operators allowable under the Diesel Rebate Scheme from 7.5 cents per litre to 12 cents. The latter runs from 1 January to 30 June.
