Chancellor Hits Road Transport Operators
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FROM OUR PARLIAMENTARY CORRESPONDENT
DEARER fuel, less credit, and fewer new roads—that is the prospect for road transport in the economic, measures announced by the Chancellor of the Exchequer on Tuesday. The 10 per cent. increase which he is making in customs and excise duties means that fuel will be 3d. a gallon dearer. Hirepurchase restrictions will not be altered, but credit will be made tighter by the rise in the bank rate from 5 to 7 per cent,
Mr. 'Lloyd said• that a pause in the growth of wages was essential as a basis for continued prosperity and growth. Where the Government had 'direct responsibility, it would act in accordance with this policy and it asked that the same lines should be followed in the private sectors of those parts of the public sector outside the immediate Control of the Government. During this pause, methods of securing a sensible long-term relationship between increases in income and increases in productivity would have to be worked out.
No change is to be made this year in Government expenditure, but next year's spending is to be pegged at an increase of about £125m. above this year's estimates.This is expected to lead to a slowing-down in road building and other projects.
" It will put up the price of road transport, and therefore' affect the export drive," said a Road Haulage 'Association spokesman. "The 3d. a gallon additional tax will be another factor to be taken, into account by the rate's 'committee when it meets to discuss increased costs."
The British Road Federation said afterwards that it hoped the increase .in fuel duty will be of short duration. The extra 3d. a gallon would fall mainly on trade and industry, the biggest users, and would inflate road transport costs. "Any stringent examination of longer-term Government investment plans will prove the justification for maintaining road programme spending at least at present levels. In the renewed battle for export markets trade and industry here are competing with countries where there has already been massiv'e investment in roads, which are that much more efficient as a result."