PRA welcomes fuel duty freeze but highlights tax pressures and rising crime - Autumn Budget 2024
PRA 05/11/2024
“The Chancellor’s Autumn Statement has maintained the freeze on fuel duty and continued the 5ppl cut, an outcome the PRA has long advocated for and a significant win for motorists and businesses amid challenging economic times. However, the statement has also introduced a series of tax increases that will deeply impact both motorists and businesses across the UK. These measures will add significant strain to households and retailers already stretched by the cost-of-living crisis.” said Gordon Balmer, Executive Director of the Petrol Retailers Association, responding to the Chancellor’s Autumn Statement.
Fuel Duty
“We are pleased that the Chancellor has responded to the calls of the PRA by opting to continue the fuel duty measures, including the freeze and the 5ppl cut. This decision will be welcome news for working people, who will avoid a sudden increase in their monthly fuel bills. By maintaining the current freeze on fuel duty, the Chancellor provides much-needed relief to motorists and businesses facing ongoing economic pressures.”
Business Rates
“The Chancellor’s decision to increase the standard business rates multiplier is disappointing and will have a detrimental impact on the petrol retail sector. The industry is already facing skyrocketing fixed costs, and further increasing what is already a record business rates burden will only contribute further to this. We urge the Government to find a sustainable, long-term solution that supports growth and keeps prices manageable for consumers.”
National Insurance
“The increase in National Insurance contributions for employers will only add to the financial strain on small businesses, which are already struggling with rising costs. Petrol retailers, like many businesses, operate on extremely tight margins, and any additional tax burden risks further inflationary pressures. We urge the Government to carefully consider the broader economic impact of such a move.”
Tobacco and vaping levies
"The Government’s decision to raise levies on tobacco and vape products must be rolled out in a sensible fashion in order to ensure that consumers do not turn to the informal market to purchase affordable alternatives. This would offset the health benefits of an increase in levies, as well as result in lost tax revenue for the Treasury."
Minimum wage
“While we fully support fair pay, we urge the government to implement balanced policies that take into account the broader economic picture. It is essential that measures to increase wages go hand-in-hand with efforts to keep operational costs manageable for businesses, enabling retailers to keep fuel prices affordable for consumers.”
“Additionally, our sector is experiencing a surge in retail crime, with petrol stations frequently targeted for fuel theft and other criminal activities. The financial burden of forecourt crime is substantial, and addressing this issue requires targeted government support, especially as fixed costs continue to rise. Many of our members operate single-site, family-run forecourts that serve local communities, and the combined impact of rising crime and tax burdens makes it increasingly challenging to maintain competitive fuel and food prices while remaining in business.”
Gordon Balmer concluded: “The PRA will continue to work closely with the Government, advocating for measures that support both consumers and businesses while maintaining stability in the fuel market. Despite the challenges, petrol retailers remain committed to serving their communities by keeping fuel prices as low as possible and ensuring essential goods and services remain accessible to all.”
About the RMI
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.