No more duty
Page 4
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THE CONFEDERATION of British Industry seldom, if ever, makes a rash statement. Its latest survey, showing an increased pace of recovery in the economy, should therefore give encouragement to all.
As the economy gains pace, manufacturing output will increase. As a consequence, so also will the demand for warehouse, distribution and transport services. This should all be very encouraging for the Government in general and the Chancellor of the Exchequer in particular. But will Mr Lawson be encouraged sufficiently to give the economy another small boost?
The signs are that his Budget proposals next month will be neutral. If that means that he will not add yet more tax to fuel, he will earn the applause of the road transport industry.
Mr Lawson may not be impressed at the prospect of industrial applause but there is a more rewarding effect to be achieved by keeping fuel costs where they are. Transport costs will be stabilised and that will benefit all sectors of industry and the economy. We rest our case to the Chancellor with this question: Is it logical to ask employers and trade unions to curb inflation with minimum pay increases and at the same time load vehicle operating costs with increased taxation?
We think not, and we hope the Treasury is as logical in its thinking.