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Please be gentle, Gordon

11th March 2004, Page 20
11th March 2004
Page 20
Page 20, 11th March 2004 — Please be gentle, Gordon
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Which of the following most accurately describes the problem?

The contents of the Chancellor's red box will be revealed on 17 March. What are operators and the trade associations hoping will

emerge? Jennifer Ball finds out.

0 perators already concerned about the cost of the Working Time Directive and digital tachographs are waiting anxiously for Gordon Brown's Budget speech. hoping that he will not add to their worries by increasing their tax burden.

The UK economy is expected to grow at around 4.75% over the next two years but pundits at accountants PricewaterhouseCoopers reckon that the UK's budget deficit will remain at around £40bn. That being the case the Chancellor would be under pressure to raise taxes or tighten his purse strings and cut public spending.

Industry bosses are concerned that economic recovery could be hindered by higher interest rates and taxes, which would further threaten the UK transport industry's competitiveness. In its submission to the Treasury the Confederation of British Industry (CBI) has urged the Chancellor to improve the goy ernment's relationship with business following complaints of "relentless and damaging rises" in company tax bills.

Director-general Digby Jones wants Brown to reduce the tax burden on companies by simple across-theboard cuts rather than complex tax breaks. The CBI is calling for a reduction in National Insurance, which it claims penalises job creation and is unrelated to companies' ability to pay.

The CBI has also asked for assurances that there will be no rise in local business rates or in environmental and transport taxes such as the aggregates levy and fuel duty — this remains the biggest fear among operators.

The Road Haulage and Freight Transport Associations are both renewing their calls for the Treasury to curb arise in fuel duty: they point out that the collapse of the dollar against sterling has not led to a fall in fuel prices at the pumps They also want the government to stabilise fuel prices by adjusting diesel duty at times of intense price volatility.

In addition the FTA wants the government to outline plans foi its proposed Lorry Road Usei Charging scheme and a review 01 its 10-Year Transport Plan. or


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