Trade bodies representing the coach and bus industry have continued to call for relief from spiralling diesel costs and prioritisation of the sector should any fuel shortages come as a result of conflict in the Middle East.
RHA is calling on ministers to halt the planned increase in fuel duty from September and to scrap a linking of the rate of duty to inflation beyond that. It notes how the 5ppl temporary reduction was introduced by the previous government in 2022 as a result of conflict.
Also sought by the coach and freight industry body is an essential user rebate. That would provide “a mechanism to return a proportion of fuel duty to those who depend on its most, helping to offset rising costs and keep vehicles on the road,” says Managing Director Richard Smith.
He adds that the essential user rebate call reflects “what is happening right now” rather than what is planned via removal of the temporary 5ppl cut. “Costs have risen sharply, margins are tightening, and for some, work is becoming financially unviable – so cash flow is under real pressure,” notes the RHA chief.
The Association is calling on coach, HGV and van operators to join its campaign to stop duty increases. It has created a customisable template letter suggestion that can be sent to MPs seeking their support.
The UK Coach Operators Association (UKCOA) has already written to ministers to point out the impact of rising fuel prices on the coach sector. It wants “targeted government support” to safeguard the industry, noting how the impact of the Middle East conflict is already costing some businesses several thousand pounds per week.
Contracted work is highlighted by UKCOA as particularly troublesome, with limited scope to recover additional outgoings. The impact on private hire has also been spotlighted as part of what the Association says is “a perfect storm.”
As already detailed, UKCOA wants a coordinated set of “targeted, proportionate and time sensitive” measures to protect the coach industry:
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- A temporary fuel duty rebate or relief
- A reduction in VAT on fuel for coach operators to 10%
- Support measures such as a temporary expansion of Bus Service Operators Grant to “a broader range of coach operations,” particularly essential services
- Public sector contracting reform in the medium-term with “more responsive and transparent fuel adjustment mechanisms”
- Greater transparency in and oversight of fuel pricing, relating to how changes to wholesale costs are passed on
- Policy certainty on fuel duty levels, including avoiding further increases in the short-term.
The Confederation of Passenger Transport (CPT) is majoring on both the cost of diesel and its ongoing availability for coach and bus fleets in case of possible shortage as twin priorities in the current crisis.
Director of Policy and External Relations Alison Edwards used a blogpost in late March to outline how CPT is lobbying government for coach and bus operators to be exempted from the planned fuel duty increase in September.
“This would relieve pressures in this tight fiscal environment and encourage motorists to consider public transport,” she says. “Exempting the industry from this fuel duty rise would cost the Treasury a relatively modest £142 million.”
Ms Edwards adds that public transport must sit alongside emergency services at the top of a hierarchy of fuel users in any shortage, noting that without public transport, “the economy would simply grind to a halt.” Such a position is already reflected in government contingency plans, she continues.
“We would urge ministers to go further – in its advice on sheltering from oil shocks, the International Energy Agency recommends that governments actively encourage a shift to public transport during times of fuel scarcity.”
In a message to members, CPT subsequently said it is working with its Coach Commission and Bus Commission to determine any further support that is needed. The Confederation also wants national and local governments to step in “where rising fuel costs put essential services at risk.”
