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Humoured rethink over fuel duty escalator

8th July 1999, Page 6
8th July 1999
Page 6
Page 6, 8th July 1999 — Humoured rethink over fuel duty escalator
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Which of the following most accurately describes the problem?

• The Government is considering stopping the fuel duty escalator.

In the face of mounting hostility to the amount of fuel tax, officials in the Treasury and the Department of Transport are said to be re-thinking the future of the fuel escalator, which forces up fuel duty by 6% over inflation every year.

"There is a strong indication that the fuel escalator policy is being re-thought," says one source close to the Government. Others agree

that ministers have been surprised by the amount of dissatisfaction that has expressed this year.

The possibility of stopping the annual tax rise comes as road transport representatives prepare to meet new Transport Minister Helen Liddell at her first Industry Forum on 19 July.

Freight Transport Association and Road Haulage Association leaders will be trying to clarify Government thinking with the former Treasury

Minister. But few pundits expect the escalator to stop soon.

Chancellor Gordon Brown has included its revenue in his public expenditure calculations. He would want time to find replacement sources of revenue and another way to promote efficient fuel use.

Deputy Prime Minister John Prescott has already said the Forum will consider "specar assistance" for small hauliers.