The PRA has written to Chancellor Rachel Reeves MP to express concerns over the potential impact of the Autumn Budget measures on the fuel retail sector.
Gordon Balmer, executive director of the PRA, says: “The proposed increases to the National Living Wage and National Insurance contributions will place significant pressure on forecourt operators. These measures risk driving up employment costs, forcing businesses to reduce investment, cut jobs, or pass costs onto consumers through higher prices for fuel and food.
“With fuel prices closely linked to inflation, such changes could worsen the cost-of-living crisis and harm economic stability. To mitigate these effects, the government must balance wage increases with policies that help manage operating costs for retailers, enabling them to keep fuel prices affordable.”
“Additionally, inheritance tax liabilities on business-owned properties could further divert resources from critical investments in EV charging infrastructure, essential for accelerating the UK’s journey to net zero. Without adequate support, the energy transition could stall, leaving motorists hesitant to make the switch to electric vehicles.
“Fuel retailers, especially small, family-run businesses, are already doing everything they can to navigate this difficult economy. However, continuous cost increases, particularly from retail crime and fuel theft, are adding significant burdens. The combination of rising costs and regulatory burdens risks forcing operators out of the market, leading to fewer forecourts, and jeopardising the UK’s fuel resilience.
“I have invited the Chancellor to meet with us to discuss these challenges. The PRA remains committed to working with the government to develop policies that protect jobs, support businesses, and ensure a stable and resilient fuel market.”
