The Freight Transport Association (FTA) is recommending the Chancellor should reduce road fuel duty by 3 pence per litre to help ease the pressure on domestic freight operators in his 2013 Budget.

Calling on George Osborne to include the reduction in his Budget plans FTA has said that it is imperative to the UK's freight transport sector which has faced a particularly challenging business environment in 2012.

The pre-Budget submission by the FTA is set against the economic background where the UK economy experienced no growth over the past year, and outlines recommendations to stimulate growth by ensuring that the key costs inputs such as fuel, vehicle parts and tyres are contained and the competitiveness of the logistics industry supported.

FTA has stated within its submission to the Chancellor that his priorities must be:

• Ease cost pressure on domestic freight activity and stimulate economic growth through consumer demand by reducing road fuel duty by 3 pence per litre, with commensurate reductions in the duty rate for gas oil.
• Stimulate investment in low-carbon fuelled vehicles by fixing fuel duty rates for natural gas and biomethane relative to diesel rates for at least 10 years.
• Ensure that the introduction of the HGV Road User Levy will be ‘tax neutral' in practice by confirming: the rates of the levy that will apply; that Vehicle Excise Duty (VED) rates will not be subject to increase simply to allow that neutrality to be achieved; and that holders of Reduced Pollution Certificates (RPCs) will be compensated by replacement grants.