The Chancellor’s announcement that fuel duty rises will be staggered over three months, instead of the expected inflation-busting rise of 3p in April, could save the logistics industry up to £150 million.

The Freight Transport Association (FTA) said the move, as part of Alistair Darling’s Budget announcement, comes as a welcome relief but still represents a significant extra cost to businesses in the aftermath of the worst post-war recession.

The FTA’s managing director of policy and communications James Hookham said: “For companies struggling to stay afloat, a staggered approach to increasing fuel duty will provide some breathing space. However, any increase in fuel duty, which is an unavoidable business cost, is bad news for the economy in the long term and a staggered approach will delay its inevitably detrimental effects.”

Celebration at the staggered introduction is likely to be muted in the logistics sector, not only as the full 3p will take effect by January 2011, but also because the fuel duty escalator, reintroduced in last year’s pre-Budget report, is to be extended to 2014.

Hookham added: “If the Chancellor is serious about reinstating business confidence in the UK, he should look on the road transport sector - quite literally the wheels of British industry - as more than just a tempting target for revenue raising.“