Moving out to cut VED
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by David Craik • Lincoln haulier KDJ Haulage plans to set up an operating centre on the Belgian/Dutch border next year and will register its vehicles there to avoid the UK's high level of Vehicle Excise Duty.
The company, which runs 10 vehicles, handles a lot of distribution work to Belgium, Holland, France and Italy, but is also anxious to take advantage of the lower costs. Last month Road Haulage Association director-general Steven Norris warned that UK hauliers would emigrate en masse if the Government's Vehicle Excise Duty review doubled the duty for 2+3 artics (CM 13-19 August).
But KDJ owner Ken Johnson says hauliers are showing enthusiasm for moving across now. "They are taking this very seriously," he adds.
Since Norris's comments RHA offices have been inundated with calls from members eager to find out how to make the move to the Continent. "The interest is there," says the Northern office. "These guys are businessmen and they want to make savings. They want to know if a move is feasible for them."
Freight forwarder Castle Roadway Services of Stoke-on-Trent says UK hauliers are missing out on work simply because of where they are based.
Dave Dixon, transport manager at Castle's Ramsgate office, says his company is operating a "European-first policy" when allocating work to subcontractors.
"We look to give work first to French and Belgian hauliers because they are cheaper," he says. Dixon believes this practice will become more common unless the pound weakens or the Chancellor "makes changes to diesel prices".