Answering the shortest-path distance between two arbitrary locations is a fundamental problem in road networks. Labelling-based solutions are the current state-of-the-arts to render fast response time, which can generally be categorised into hub-based labellings, highway-based labellings, and tree decomposition labellings. Hub-based and highway-based labellings exploit hierarchical structures of road networks with the aim to reduce labelling size for improving query efficiency. However, these solutions still result in large search spaces on distance labels at query time, particularly when road networks are large. Tree decomposition labellings leverage a hierarchy of vertices to reduce search spaces over distance labels at query time, but such a hierarchy is generated using tree decomposition techniques, which may yield very large labelling sizes and slow querying. In this paper, we propose a novel solution \emph{hierarchical cut 2-hop labelling (HC2L)} to address the drawbacks of the existing works. Our solution combines the benefits of hierarchical structures from both perspectives - reduce the size of a distance labelling at preprocessing time and further reduce the search space on a distance labelling at query time. At its core, we propose a new hierarchy, \emph{balanced tree hierarchy}, which enables a fast, efficient data structure to reduce the size of distance labelling and to select a very small subset of labels to compute the shortest-path distance at query time. To speed up the construction process of HC2L, we further propose a parallel variant of our method, namely HC2L$^p$. We have evaluated our solution on 10 large real-world road networks through extensive experiments.