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Fuel duty takes centre stage In run-up to the election •

17th May 2001, Page 6
17th May 2001
Page 6
Page 6, 17th May 2001 — Fuel duty takes centre stage In run-up to the election •
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Which of the following most accurately describes the problem?

• by Jez Abbott

The issue damaging every haulage business in the UK is dominating the general election campaign with parties battling it out over fuel taxation. The Tories got in first in their Time for Common Sense manifesto with a pledge to cut fuel duty by 6p/lit as part of £8bn-worth of tax cuts.

The UK Independent Party, which wants to withdraw Britain from the EU, waded in with a promise of a 9p/lit cut in fuel duty, seeing it as its best hope of gaining votes.

The Liberal Democrats will not reduce tax on fuel but say they will guarantee a freeze. As CM went to press, the Labour Party refused to reveal what measures it would take on fuel. Transport Minister Gus Macdonald would only talk about the party's record, flagging up VED cuts and the move to 44-tanners.

Shadow Transport Minister Bernard Jenkin says that Labour will not move on fuel duty "because it would be too much of a humiliation". He adds: "We have the worst traffic in Europe and the highest taxes and that's a lethal concoction."

But his Liberal Democrat counterpart Don Foster warns: "People will not forget that it was the Conservatives who introduced fuel tax rises."

Simon Chapman, chief economist at the Freight Transport Association, points out that VAT paid on duty means the Tories' offer is worth nearer 5p/lit but adds that It would reduce the UK's freight transport bill by £800 million a year. An owner-driver with a 40-tonner would save £2,100 a year.

Road Haulage Association chief executive Roger King says there is not much between the two main parties and he wonders how much is window dressing. He suggests that European harmonisation on fuel tax should be higher on party agendas: "The EC sets minimum levels but no maximum level, so the UK government can charge twice as much."

Accusations by the Tories that the Labour Party had signed up to such a deal were refuted earlier this week.

The three major parties are committed to a system which would charge foreign hauliers to use UK roads. The Tories would boot out the government's integrated transport policy and in its place would come an independent Road Standards Unit.

"Every other utility has a regulator yet the roads have no champion," says a spokesman. "This would target traffic, safety and environmental impact."

The UK Independent Party is the only party which says it will abolish the controversial £2000 penalty for stowaways, describing the legislation as "iniquitous".

• See comment, page 9.


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