The Freight Transport Association has welcomed the Chancellor's Budget statement and the news that diesel duty will be frozen until September.

Fuel costs represent over 30 per cent of the operating costs of lorries and during the last 12 months the bulk price for diesel has risen by 10 per cent.

FTA chief economist Simon Chapman said: “It was very important that the Chancellor did not add to industry's enormous fuel costs by further increasing diesel duty. However, it is unfortunate that he did not bite the bullet and extend the freeze for a full year and thus establish a little more stability into transport operating costs.

“Whether it is the cost of the diesel itself or the duty, every 1p per litre on the price of diesel adds £140 million to industry's overall operating costs. The Chancellor already takes £4.2bn per year in diesel duty and lorry VED from heavy goods vehicles out of a total of £43.5bn from all road users.

“Duty on diesel in the UK is 47p per litre against a European average of just 22p per litre, generating very substantial problems for the domestic industry in competition against foreign vehicles working in the UK using cheap European fuel. Around one in eight of the heaviest vehicles on UK roads now comes from overseas,” Chapman said.